Oil Drops as Signs of Tariff Reductions Fuel Uncertainty
Oil was pushed lower after U.S. Commerce Secretary Howard Lutnick said the Trump administration could lift some tariffs on Mexico and Canada, adding to uncertainty in global markets.
West Texas Intermediate crude fell below $68 a barrel after falling 3% over the past three sessions. Brent crude settled near $71 on Tuesday. Lutnick did not explicitly say what action President Donald Trump was considering but dismissed the idea that the levies would be lifted entirely. He made his comments on Fox.
Oil has been trending lower since mid-January as Trump’s trade policies raise the prospect of a multi-pronged trade war, which could hurt energy demand. If the president follows through on his broad tariffs, it could lead to a pullback in global crude flows.
WTI for April delivery fell 0.6% to $67.87 a barrel as of 7:34 a.m. in Singapore.
Brent for May delivery settled 0.8% lower at $71.04 a barrel on Tuesday.
Source: Bloomberg