Oil Prices Climb Amid OPEC+ Talks and Tariff Concerns
Oil prices edged higher on Tuesday as investors closely monitored OPEC+ discussions on delaying a planned production increase and weighed the potential effects of President-elect Donald Trump’s proposed tariffs on Mexico and Canada.
Brent crude futures rose by 66 cents, or 0.9%, to $73.67 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 66 cents, or 0.96%, reaching $69.60 a barrel as of 10:35 a.m. ET (1535 GMT). Both benchmarks briefly surged over $1 per barrel during the session.
OPEC+ is reportedly debating whether to delay the planned 180,000 barrel-per-day (bpd) production increase slated for January. Delegates are cautious about adding supply to the market amid signs of potential oversupply, according to Bloomberg. Key members, including Iraq, Saudi Arabia, and Russia, emphasized the need for stable oil markets and fair pricing during discussions on Tuesday.
“The market reacted sharply to reports about OPEC talks resuming,” noted Phil Flynn, senior analyst at Price Futures Group.
Adding to market uncertainty, Trump proposed a 25% tariff on all imports from Mexico and Canada. Although analysts consider it unlikely that Canadian oil would face such tariffs, given its unique characteristics and critical role in U.S. supply, the prospect of trade tensions has added to market volatility.
Canada exports around 4 million bpd of crude to the U.S., making it a vital supplier. Any disruptions could complicate an already sensitive oil market as investors weigh OPEC+ production decisions and geopolitical developments.
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