On Wednesday, US WTI crude oil futures fell for the third consecutive trading day. The announcement from OPEC+ planning to increase production starting in April raised market supply expectations, putting pressure on oil prices. Meanwhile, investors are closely watching changes in trade policies by the Trump administration towards Canada and Mexico that might impact the crude oil market.
The April delivery West Texas Intermediate (WTI) crude futures on the New York Mercantile Exchange fell by $1.95, a decrease of 2.86%, closing at $66.31 per barrel, after dipping to as low as $65.22, marking the lowest level since May 2023.
The anticipation of increased production by OPEC+ has heightened concerns over an excess supply of crude oil. Simultaneously, the potential changes that former President Trump might make to trade policies with Canada, Mexico, and China contribute further to market uncertainty. On Tuesday evening, US Commerce Secretary Howard Lutnick stated that Trump would make final decisions on whether some industries would receive relief. After this announcement, there was a slight rebound in oil prices.
A well-informed source revealed that while Trump still plans to maintain a 25% tariff on imports from Canada and Mexico, he is considering lifting the 10% tariff on Canadian energy products, including crude oil and gasoline, provided they meet the USMCA's rules of origin. This potential policy adjustment has drawn market attention regarding its impact on the North American crude oil market.
Analysts pointed out that if the Trump administration adjusts the tariff policy on Canadian energy imports, it could somewhat boost demand in the North American crude oil market, but OPEC+'s production increase plans may still put pressure on global oil prices. Under the dual influence of increased supply and trade policy changes, oil prices may continue to fluctuate in the short term.
