The U.S. administration confirmed on Tuesday its intention to impose new tariffs on products imported from Canada and Mexico, a measure that could take effect as early as February 1st. This decision, announced by White House spokesperson Karoline Leavitt, is part of a policy aimed at protecting domestic industries, but it is raising concerns in commodity markets.
Direct Impact on Oil
Investors are worried about the effects of these measures on global oil demand. John Plassard, an analyst at Mirabaud, highlights that this protectionist policy could heighten trade tensions and curb energy consumption. Additionally, an unexpectedly large increase in crude oil reserves in the U.S. has intensified downward pressure on prices.
According to the U.S. Energy Information Administration (EIA), crude stocks rose by 3.5 million barrels during the week ending January 24. This increase surpassed analysts’ forecasts, who had predicted a rise of 2.2 million barrels.
Prices Under Pressure
As a direct consequence of these announcements, oil prices declined on Wednesday. Brent crude, for March delivery, dropped by 0.22% to $77.32 per barrel. Its U.S. counterpart, West Texas Intermediate (WTI), fell by 0.50%, settling at $73.40 per barrel.
Price fluctuations could continue as markets await the upcoming meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+), scheduled for Monday. This joint ministerial monitoring committee (JMMC) will be closely watched by investors, especially since Donald Trump recently urged Saudi Arabia to increase its production to lower prices.
European Gas Prices Also Rise
Meanwhile, natural gas prices in Europe have reached their highest level since October 2023. The Dutch TTF futures contract, the benchmark for the European market, climbed to €51.25 per megawatt-hour (MWh). This increase is primarily due to disruptions in several gas fields in Norway, operated by Gassco.
As U.S. energy policy continues to fuel uncertainties, market participants remain on alert regarding the economic consequences of these protectionist measures.
