U.S. crude oil prices dropped over 2% on Tuesday as President Donald Trump considered imposing tariffs on key trade partners and introduced measures aimed at increasing domestic energy production.
West Texas Intermediate (WTI) crude fell $1.99, or 2.56%, closing at $76.89 per barrel, while Brent crude, the global benchmark, declined by 86 cents, or 1.07%, settling at $79.29 per barrel.
Following his inauguration on Monday, Trump announced that his administration was evaluating a 25% tariff on imports from Canada and Mexico.
Such tariffs could impact economic growth and reduce fuel demand, a concern echoed by industry experts.
The president also signed several executive orders intended to promote domestic fossil fuel production.
These actions included declaring a national energy emergency, rolling back restrictions on offshore drilling implemented during the Biden administration, and lifting a pause on new liquefied natural gas exports.
These measures aim to position the U.S. as a dominant energy player while fostering growth in the energy business sector.
Market analysts are closely monitoring the potential economic and global market implications of Trump’s dual approach to trade and energy policy, which has already begun to influence oil prices.
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