Today’s markets analysis on behalf of Hassan Fawaz Chairman & Founder of GivTrade
5th February 2025
Crude oil futures continued to decline on Tuesday following U.S. President Donald Trump’s decision to delay tariffs on Mexico and Canada, the U.S.’s largest foreign oil suppliers, for one month. The temporary pause in tariffs, including a 10% tariff on Canadian energy imports, provides short-term relief, supporting market sentiment. However, uncertainty remains as tariff discussions may resume.
While the tariff delay has improved risk sentiment, oil prices have struggled to recover with concerns about rising OPEC+ production from April adding to the downside risks. The group plans to gradually increase output, which could strain prices further as larger crude volumes arrive on the market.
In the near term, global crude prices are expected to remain capped due to higher supply risks and potential trade challenges. In this regard, trade tensions between the US and China could also affect demand levels and could fuel more caution among traders, leaving oil prices under pressure.