West Texas Intermediate traded above $73 a barrel, with Brent crude closing above $77. Trump said he’d impose the tariffs on some foreign-produced goods in the “near future” in order to compel producers to manufacture them in the country, listing products including steel, aluminum and copper.
Meanwhile, Scott Bessent was confirmed as Treasury Secretary, with the Financial Times reporting that he was in favor of universal tariffs starting at 2.5%. In his hearing, Bessent has backed tougher curbs on Russian oil, while also saying that the US could “make Iran poor again” through sanctions.
In Canada, Alberta’s premier said that the country should prepare for tariffs on Feb. 1, a date highlighted by Trump in earlier remarks. More than half of US crude imports come from the northern neighbor, most from Alberta.
Crude remains modestly higher year to date, rising on a cold Northern-Hemisphere winter and sanctions on Russian crude and shipping, then falling as Trump’s tariff threats rattled markets. Monday’s retreat came amid a tariff spat between Colombia and the US, as well as a wider selloff in global markets.
Looking ahead, oil traders expect OPEC and allies to stick with its current supply policy at a review meeting next week, resisting pressure from Trump to boost production and bring down crude prices. At present, the group intends to bring back output in monthly tranches starting from April.
Trading volumes in Asia on Tuesday are likely to be lower due to the upcoming Lunar New Year holidays.
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