The oil market is experiencing heightened volatility as traders react to the latest tariff developments under the second Trump administration. The potential inclusion of Canadian oil in new tariff measures is a significant concern, as the U.S. imports an average of 4 million barrels per day from Canada. Any restrictions could tighten supply, impacting the storage hub of Cushing and Midwest refiners, and potentially driving up gasoline prices. The broader implications of tariffs on global trade flows are also in focus, with some analysts viewing them as bearish for oil consumption, while others see them as inflationary, prompting oil purchases as a hedge.
The market remains on edge, with traders closely monitoring any announcements that could affect supply and demand dynamics. The uncertainty surrounding the tariffs has led to choppy trading, with prices reacting sharply to any news. As of 10:47 on January 31, the price of Brent crude oil (CO1) stands at $75.91, slightly up from its last close of $75.89, reflecting the ongoing market turbulence.