Oil prices saw a significant increase on Friday as markets reacted to US President Donald Trump’s threat to impose tariffs on Mexico and Canada, the largest exporters of crude oil to the United States. Trump warned of a potential 25% tariff on oil imports if both countries fail to stop the flow of fentanyl across the border. March Brent crude futures rose by 38 cents to $77.25 per barrel, while US West Texas Intermediate crude increased by 49 cents to $73.22 per barrel. Despite the projected decline of 1.6% for Brent and 2% for WTI crude this week, Brent is expected to close January with a 3.6% gain, marking its best monthly performance since June. Meanwhile, WTI crude is forecasted to increase by 2%. While the tariff threat has driven the surge in oil prices, it remains unclear whether the new measures will affect oil shipments.
