Investing.com – Oil prices were lower in European afternoon trading on Tuesday as investors assessed President Donald Trump’s tariff policies and his declaration of a national emergency aimed at boosting US energy production.
March crude oil fell 1.8% to $78.72 per barrel, while it was down 2.6% to $75.42 per barrel at 08:58 ET (13:58 GMT).
After taking office on Monday, Trump stopped short of imposing tough universal tariffs but suggested he could impose 25% duties on imports from Canada and Mexico on February 1. The statements led to volatile trading in the US dollar, impacting oil costs for buyers holding foreign currencies.
Meanwhile, Trump said in a White House briefing that he will declare a national energy emergency and use “all necessary resources” to build America’s energy infrastructure.
Trump added that he will end former President Joe Biden’s climate change policies by halting curbs on energy production and use while allowing more mining and processing of non-fuel minerals.
Trump also said he will end land leasing to wind farms and that the US will withdraw from the Paris Climate Agreement.
While the comments are relatively light on detail, expectations have increased that U.S. oil production will rise even further in the coming months, after averaging around record highs of 13 million barrels per day in 2024. Such a trend threatens at least some of the offer to compensate. tightening of US sanctions on Russia and extensive production cuts by the Organization of the Petroleum Exporting Countries.
In addition, Trump has expressed an aggressive stance toward Venezuela, suggesting that the US will likely stop buying oil from the country. Trump is expected to impose tougher sanctions on the major oil producer, tightening crude markets.
(Ambar Warrick contributed reporting.)
