Oil prices hold steady as investors await potential US tariffs on Mexico, Canada

(MENAFN) Oil prices held steady in early Thursday trading as investors awaited news on potential U.S. tariffs on Mexico and Canada, the two largest suppliers of crude oil to the United States. Brent crude futures saw a slight increase of 7 cents, or 0.1 percent, reaching USD76.71 per barrel by 0122 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures rose by 17 cents, or 0.2 percent, to USD72.79.

U.S. crude futures had settled at their lowest point of the year on Wednesday, reflecting ongoing market uncertainty. This drop came as traders continued to monitor geopolitical developments, particularly regarding the U.S. stance on trade relations with its North American neighbors.

White House spokeswoman Caroline Leavitt informed reporters on Tuesday that President Donald Trump still intends to fulfill his promise of imposing tariffs on Canada and Mexico, with the decision expected to be announced on Saturday. The potential tariffs are causing concern in the oil markets, given the significant role both countries play in U.S. oil imports.

On the demand side, the U.S. Energy Information Administration reported on Wednesday that U.S. crude oil inventories had increased by 3.46 million barrels in the previous week, as refinery consumption dropped for the third consecutive week. Analysts had predicted a more modest increase of 3.19 million barrels, indicating that supply pressures were slightly higher than anticipated.

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