Oil prices declined on Tuesday after US President Donald Trump announced a one-month suspension of tarrifs imposed on Canada and Mexico.
The international benchmark Brent crude fell by 0.6%, trading at $75.17 per barrel at 10.18 am local time (0718 GMT), down from $75.64 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) declined by 0.9%, settling at $71.77 per barrel, compared to its prior session close of $72.48.
Trump imposed a 25% customs tariff on imports from Canada and Mexico, and a 10% duty on imports from China from Feb. 1.
On Monday, Trump and Mexican President Claudia Sheinbaum spoke on the phone, after which Trump revealed that they both agreed on measures to improve border security.
After the phone call, Trump announced that he was suspending the 25% tariff on imports from Mexico for one month, in exchange for Mexico enhancing its border security efforts.
Following his conversation with Canada’s Prime Minister Justin Trudeau, Trump announced that tariffs against Canada would also be suspended for 30 days.
Trump said Canada agreed to ensure the US has a secure northern border and end the flow of deadly drugs like fentanyl into the country.
Meanwhile, during its meeting on Monday, the OPEC+ group decided to keep its supply plans unchanged. Starting in April, the group will continue to increase supply by 120,000 barrels per day each month.
Expectations that the group will gradually increase oil production in the future have eased supply concerns among market players, putting downward pressure on prices.
By Zeynep Beyza Kilic
