West Texas Intermediate futures traded near $66 a barrel, and are down 5% so far for the week on concerns levies will dent demand. Brent closed below $70. Trump signed orders on Thursday paring back some tariffs on Mexico and Canada until April 2, just days after they came into effect.
Trump’s trade policies and retaliatory measures from targeted nations including China have rattled markets, with US crude heading for a seventh weekly drop, the longest run of declines since December 2023. A plan by OPEC+ to start reviving idled output in April has added to bearish headwinds.
The early April timing for the tariffs coincides with a date when the president is expected to start unveiling plans for so-called reciprocal duties on nations around the world. Canada says it won’t scrap its retaliatory measures if the US administration keeps any levies in place.
Tankers carrying fuels from Canada destined for the US started to divert to Europe prior to the news of the delay, which led to Canadian heavy crude rallying. America is a major consumer of oil from its northern neighbor.
Separately, Treasury Secretary Scott Bessent said the US will not hesitate to go “all in” on sanctions on Russian energy if the measures help lead to a ceasefire in the Ukraine war. He made the remarks to an audience at the Economic Club of New York on Thursday.
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