Oil prices dip amid Trump’s tariff announcements, OPEC concerns

(Bloomberg) – Oil edged lower as traders weighed the possible fallout from President Donald Trump’s planned tariffs on major U.S. crude supplier Canada and other countries. The market was also watching reports OPEC will evaluate potential changes to America’s energy policy.

West Texas Intermediate dipped below $74 a barrel. OPEC+ is set to discuss Trump’s plans to increase oil production in the US at its next meeting on Feb. 3, Tass reported, citing Kazakhstan’s Energy Minister Almassadam Satkaliyev. White House press secretary Karoline Leavitt reiterated on Tuesday that levies as high as 25% on imports from Canada will start as soon as Feb. 1

A U.S. stockpile report Wednesday showed inventories increased by 3.46 million barrels last week. The weekly gain was the biggest since October.

Crude has had a bumpy start to the year as U.S. sanctions against Russia and cold weather initially ratcheted prices higher. Concerns about the possible impact on energy demand from a trade war triggered by Trump, plus poor economic data from China, have pulled them back.

Aside from touting his package of tariffs, the US president has also been calling on OPEC+ to help lower crude prices, in part as he looks to pressure Moscow to end the Ukraine war.

“Crude prices keep dancing to the rhythm of Trump’s tariff orchestra, with Canada tariffs in focus as they go into effect on Saturday,” said Ole Hansen, head of commodities strategy at Saxo Bank. Wednesday’s price decline represents “a sour sentiment across an overall rangebound market,” he added.