Oil rises as Trump slaps tariffs on biggest crude supplier to US

Tariffs on the US’s largest crude oil supplier are providing a boost to crude oil prices and in particular refined product prices,

said Warren Patterson, head of commodities strategy for ING Groep NV

While the initial move on crude oil is upward, a cycle of tariffs and retaliatory actions by Canada, Mexico, China and perhaps others in the future could lead to a worldwide recession, causing oil prices to plummet,

Andy Lipow, President of Lipow Oil Associates told CNBC

Someone is going to get kind of hurt here,

Wells Fargo Investment Institute’s John LaForge told Reuters

Any way you cut it, you’re looking at higher prices,

Wells Fargo’s LaForge said

Expect fuel prices will rise noticeably if oil and refined products are not exempt,

GasBuddy analyst Patrick De Haan said in a post on social media

Whatever the cost is, ultimately it ends up in the consumer’s lap, and there’s nothing we can do about it,

Ryan said

We’re in a kind of hand to mouth situation here,

said Alex Ryan, energy director at Kansas-based Oasis Energy, which operates a travel store and partially owns a fuel retailing convenience store

The oil in Alberta doesn’t have much of an option where it goes, and the refiners in the Midwest don’t have much of an option on where they get the feedstock,

he said

Based on the four-day trading, fuel prices will have mixed adjustments next week. The primary drivers were the market's worries about the tariffs proposed by US President Trump as it could further pressure economic growth and energy demand, Higher diesel export volumes from India and China, which weighed on prices, and the seasonal boost in demand over the peak Lunar New Year travel which in turn supported the gasoline price benchmarks,

Jetti Petroleum President Leo Bellas said

Based on the four-day trading in the Mean of Platts, Singapore, in which two days were holidays, we expect a mixed movement in the prices of petroleum products by next week. The main developments for this are US President Trump calling for lower oil prices and higher output in the US and other major suppliers, including OPEC, continuing build-up of US oil inventory, and the uncertainty over potential US tariffs on Canada and Mexico,

Department of Energy's Oil Industry Management Bureau Rodela Romero said

However, one thing to look out for is that the OPEC+ Joint Ministerial Monitoring Committee, which oversees the group's crude production agreement, will meet on Feb. 3, 2025, to look into the oil market situation again,

she added