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, particularly affecting the storage hub of Cushing and Midwest refiners, which may also lead to increased gasoline prices. The broader implications of tariffs on global trade flows are also in focus, with some analysts viewing them as bearish for consumption, while others see them as inflationary, prompting oil purchases as a hedge.
The uncertainty surrounding these tariffs has led to fluctuating oil prices, with traders closely monitoring any announcements that could impact supply and demand dynamics. The market remains on edge, anticipating further choppy trading as the situation develops. As of 10:47 on January 31, WTI crude oil is priced at $72.72, slightly down from its last close of $72.73, reflecting the ongoing market turbulence.