Oil prices fell on Wednesday as markets assessed the potential impact of U.S. President Donald Trump’s proposed tariffs on global economic growth and energy demand. Brent crude declined by 29 cents (0.4%) to settle at $79.00 per barrel, while U.S. West Texas Intermediate (WTI) dropped 39 cents (0.5%) to $75.44. This marked Brent’s fifth consecutive daily loss, its longest streak since September, and WTI’s fourth straight decline, last seen in November. Concerns grew after Trump hinted at tariffs on imports from Canada, Mexico, China, and Europe, alongside possible new sanctions on Russia if peace negotiations over Ukraine fail. Market focus shifted from U.S. sanctions on Russia to trade policy uncertainties, raising fears about reduced energy demand.
Additional pressures on prices included Trump’s renewed pledge to halt U.S. oil imports from Venezuela, which currently supplies about 200,000 barrels per day, and a reported surge in Saudi Arabia’s crude exports in November to an eight-month high. Meanwhile, Iran offered conciliatory messages at the World Economic Forum, expressing willingness to engage with Western leaders despite ongoing U.S. sanctions. Analysts projected U.S. crude stockpiles fell by 1.6 million barrels last week, potentially marking the ninth consecutive weekly decline, though official data was delayed due to the Martin Luther King Jr. Day holiday. Elsewhere, Texas ports began resuming operations after Winter Storm Enzo caused disruptions earlier in the week. The market remains cautious as traders evaluate the interplay of trade policies, geopolitical developments, and energy supply trends.