The commodities market is bracing for potential volatility as the deadline for new tariffs imposed by the US on Canada, Mexico, and China approaches. Investors are on edge, given the possibility of last-minute changes in trade policy, which could significantly impact commodity prices. President Donald Trump has indicated that he will be in discussions with Canadian Prime Minister Justin Trudeau, leaving room for potential shifts in the proposed tariffs. Recent history, such as the deferred trade penalties with Colombia, suggests that last-minute changes are possible, adding to the uncertainty.
The proposed tariffs include a 10% levy on Canadian oil, which could lead to higher gasoline prices in the US Midwest due to increased supply costs. This has created a tense atmosphere in the commodities market, as traders anticipate possible fluctuations in prices. The threat of tariffs and the potential for political negotiations to alter these plans contribute to the market's current volatility.
As of 01:30 on February 3, the price of Brent crude oil (CO1) stands at $76.41, slightly down from its last close of $76.76. The market remains on alert for any developments that could influence the direction of commodity prices in the coming days.