Oil prices are declining due to Trump's plans to resolve trade wars, according to Bloomberg.

Oil prices have dropped following U.S. President Donald Trump's threat to impose tariffs on China, raising concerns about potential trade wars on multiple fronts. He had previously announced plans to introduce tariffs for Canada and Mexico.

This was reported by Bloomberg.

Brent has fallen to nearly $79 per barrel, while West Texas Intermediate has dipped below $76. Trump stated that he is considering a 10% tariff on China in response to fentanyl shipments from that country. Meanwhile, Canada has increased its crude oil exports to the U.S. to avoid potential tariffs.

On the first day of his presidency, Trump signed significant orders, including a review of U.S. energy policy and a threat to impose 25% tariffs on Canada and Mexico. These countries are key exporters of goods to the U.S., including crude oil that is processed at American refineries.

Canadian suppliers are eager to "bring as much volume to market as possible" before the tariffs take effect, according to Rystad Energy. Trump indicated that tariffs could be implemented starting February 1, which, as warned by Goldman Sachs Group Inc. last year, would lead to higher gasoline prices for consumers in the U.S.

Oil prices remain high this year, attributed to extensive U.S. sanctions against Russia, which have significantly impacted physical oil and tanker markets. Trump has stated he is prepared to impose new sanctions against Moscow if Vladimir Putin does not agree to negotiations regarding Ukraine.

Background. Earlier, Mind reported that oil exports through the Russian port of "Ust-Luga" had decreased by 44%. January is expected to see the lowest supply volumes since July 2021.