Oil Prices Steady ahead of Trump's Threatened Tariffs on Canada, Mexico

An offshore oil rig is pictured off the coast of Huntington Beach, California, US, November 14, 2024. (Reuters)
An offshore oil rig is pictured off the coast of Huntington Beach, California, US, November 14, 2024. (Reuters)
TT
20

Oil Prices Steady ahead of Trump's Threatened Tariffs on Canada, Mexico

An offshore oil rig is pictured off the coast of Huntington Beach, California, US, November 14, 2024. (Reuters)
An offshore oil rig is pictured off the coast of Huntington Beach, California, US, November 14, 2024. (Reuters)

Oil prices were little changed on Thursday as investors focused on tariffs threatened by US President Donald Trump on Mexico and Canada, the two largest suppliers of crude to the United States.

Brent crude futures were down 10 cents at $76.48 a barrel at 1318 GMT. US crude futures were down 16 cents to $72.46. US crude futures had settled at their lowest price this year on Wednesday.

"All oil considerations are in the shadow of what tariffs might be announced on Canada and Mexico," said John Evans, an analyst at oil broker PVM. Markets are "mesmerised by what will come after February 1 when any trade restrictions are promised to be unveiled."

The White House on Tuesday reaffirmed Trump's plan to impose 25% tariffs on imports from Canada and Mexico. On Wednesday, the president's nominee to run the Commerce Department said the two countries can avoid this if they act swiftly to close their borders to fentanyl, Reuters reported.

However, IG market analyst Tony Sycamore said traders had already priced in Trump's tariffs: "(this is) a major reason why crude oil is trading where it is."

Winter storms hit US demand last week, with crude oil stockpiles in the US rising by 3.5 million barrels as refiners cut production. Analysts had expected a 3.2 million-barrel rise, according to a Reuters poll.

On the supply side, the latest US sanctions on Moscow are squeezing crude oil exports from Russia's western ports, which are set to fall 8% in February from the January plan as Moscow boosts refining, traders said and Reuters calculations showed.

Investors are also looking ahead to a meeting by the Organization of the Petroleum Exporting Countries and its allies including Russia, together called OPEC+, scheduled for Feb. 3.

The group is set to discuss Trump's efforts to raise US oil production and take a joint stance on the matter, Kazakhstan said on Wednesday.



47 Ships Rerouted to Egypt's Suez Canal this Month, Chairman Says

FILED - 17 November 2019, Egypt, Ismailia: A container ship sails through the Suez Canal. Photo: Gehad Hamdy/dpa
FILED - 17 November 2019, Egypt, Ismailia: A container ship sails through the Suez Canal. Photo: Gehad Hamdy/dpa
TT
20

47 Ships Rerouted to Egypt's Suez Canal this Month, Chairman Says

FILED - 17 November 2019, Egypt, Ismailia: A container ship sails through the Suez Canal. Photo: Gehad Hamdy/dpa
FILED - 17 November 2019, Egypt, Ismailia: A container ship sails through the Suez Canal. Photo: Gehad Hamdy/dpa

Egypt's Suez Canal Authority chairman Osama Rabei said on Sunday that 47 ships have been rerouted from Cape of Good Hope to Suez Canal since the start of February.

Earlier this month, Rabie said that the Red Sea crisis did not create a sustainable alternative route to the canal and that there were positive indicators for the return of stability in the region, Reuters reported.

Iran-backed Houthi militants have attacked vessels in the Red Sea area since November 2023, disrupting global shipping by forcing vessels to avoid the nearby Suez Canal and reroute trade around Africa, raising shipping costs.

Egyptian President Abdel Fattah al-Sisi said in December the disruption cost Egypt around $7 billion in less revenue from the Suez Canal in 2024.