The global oil market is on edge as US President Donald Trump considers a potential carve-out for crude oil in his planned tariffs against Canada and Mexico. Such a move would align with the administration's broader agenda of prioritizing inexpensive conventional energy, potentially increasing supply from these countries and driving down global oil prices. This development could be a setback for oil bulls who have been betting on higher prices, as increased supply typically exerts downward pressure on prices.
A carve-out would not only signal the White House's commitment to affordable energy but also encourage investments in sectors reliant on cheap oil. The administration's strategy includes rolling back regulations on US drilling, advocating for greater domestic production, and urging OPEC to help lower prices. These actions could diminish OPEC's influence on global oil prices, further supporting the administration's energy goals.
As of 20:01 on January 30, the price of crude oil stands at $73.19, slightly up from its last close of $72.73. The market is closely watching for any announcements from the White House, which could significantly impact oil price dynamics in the coming hours.