Oil Prices Hit One-Week Low Amid Concerns About Trump’s Energy Policies

Brent crude fell 29 cents, or 0.4%, closing at $79.00 a barrel, while U.S. West Texas Intermediate (WTI) dropped 39 cents, or 0.5%, to settle at $75.44.

Oil prices dropped to a new one-week low on Wednesday as markets assessed the potential impact of U.S. President Donald Trump’s proposed tariffs on global economic growth and energy demand.

Brent crude fell 29 cents, or 0.4%, closing at $79.00 a barrel, while U.S. West Texas Intermediate (WTI) dropped 39 cents, or 0.5%, to settle at $75.44.

This marked Brent’s fifth consecutive day of decline, the first since September, and WTI’s fourth straight drop, the first since November. Both benchmarks hit their lowest levels since January 9 for the second day in a row.

“Possible sanctions under the new Trump administration remain unclear, with possible tariffs related to Canada and Mexico now seemingly at the forefront of trader uncertainties,” analysts from Ritterbusch and Associates noted.

Trump stated his administration was considering a 10% tariff on Chinese goods starting February 1, alongside potential levies of 25% on imports from Mexico and Canada.

He also threatened duties on European imports and proposed new tariffs against Russia if it does not agree to end the war in Ukraine.

“The oil market’s attention is slowly turning away from U.S. sanctions against Russia towards President Trump’s potential trade policy,” ING analysts commented, noting that growing tariff concerns are pressuring the energy sector.

In Europe, leaders Emmanuel Macron and Olaf Scholz emphasized unity in Paris, as the region grapples with the threat of U.S. tariffs.

Additionally, Trump suggested halting oil purchases from Venezuela, a member of OPEC under U.S. sanctions. U.S. imports from Venezuela averaged 200,000 barrels per day in 2024, up from 100,000 bpd in 2023, according to the Energy Information Administration.

Separately, analysts expect U.S. crude stockpiles to have dropped by 1.6 million barrels last week. Meanwhile, Texas ports began resuming operations after Winter Storm Enzo disrupted energy and shipping activities earlier in the week.