Oil declined after President Donald Trump delayed the start of tariffs against the US’s two biggest foreign suppliers of crude by a month.CompanyValueChange%ChangeWest Texas Intermediate fell toward $72 a barrel, erasing all of Monday’s gains, while Brent crude closed near $76. Trump pushed back the planned levies on Canada and Mexico after the nations agreed to take tougher measures to combat migration and drug trafficking.
Crude had soared as much as 3.7% on Monday, its biggest intraday advance in almost four months, before paring those gains after the deal with Mexico was announced. Tariffs of 10% are still set to be imposed on China, but Trump said he would speak to Beijing soon regarding the duties.
Futures have faced a bumpy start to the year, first rising on a cold winter and US sanctions on Russian energy flows, before paring those gains after Trump took office and threatened blanket tariffs that could hamper global growth. Demand concerns remain pertinent, with top importer China’s manufacturing activity unexpectedly declining for a second month in January.OPEC and its allies, meanwhile, didn’t make any changes to existing oil-production plans at a review meeting on Monday, even as the US president called on the group to lower crude prices by expanding output. OPEC+ is set to maintain production curbs this quarter, then gradually increase output in monthly tranches from April.First Published: Feb 4, 2025 7:00 AM IST
