West Texas Intermediate (WTI) oil prices have surged in recent weeks, driven by the market's anticipation of potential U.S. tariffs and geopolitical tensions, according to a report from Citi. The report highlights that U.S. commodity prices, including WTI oil, have rallied sharply relative to their non-U.S. counterparts, effectively pricing in a 45-55% chance of a 10% tariff on imports. This has led to an increase in WTI/WCS oil differentials, reflecting potential tariffs on Canadian imports. Brent oil prices have also climbed $5 over the past week to $81 per barrel, influenced by new sanctions on Russian oil and concerns over U.S. freeze-offs. Citi notes that President-elect Trump's recent speech emphasized energy prices as a key focus, potentially impacting future oil market dynamics. "Our baseline view is that President-elect Trump represents a 'right way risk' for oil bears, with multiple potential paths to lowering prices at his disposal," Citi analysts state. As the market navigates these uncertainties, the report suggests using U.S. versus non-U.S. commodities to hedge against broad tariff risks.