Crude oil futures traded higher on Friday morning after the US President, Donald Trump, reaffirmed plans to impose tariffs on Canada and Mexico from February 1.

At 9.57 am on Friday, April Brent oil futures were at $76.37, up by 0.63 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $73.39, up by 0.91 per cent.

February crude oil futures were trading at ₹6367 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹6319, up by 0.76 per cent, and March futures were trading at ₹6330 against the previous close of ₹6293, up by 0.59 per cent.

Soon after assuming charge recently, Trump had threatened to impose 25 per cent tariffs on Canada and Mexico from February 1. He wants these two nations to take action to stop the influx of migrants from these nations to the US and over the entry of fentanyl drug to the US.

He reiterated his plans to impose tariffs on Canada and Mexico on Thursday. However, he is yet to take a decision on exempting the crude oil imports from the tariff plans.

Stating that he may or may not impose tariffs on oil imports, Trump told reporters on Thursday that his administration is likely to take a decision in this regard soon.

According to the US EIA (Energy Information Administration) data, Canada exported 3.9 million barrels a day of crude oil to the US in 2023, and Mexico exported 733,000 barrels a day to the US.

Trump said he is still considering tariffs on China. China is a major consumer of crude oil in the global market.

In his latest post on ‘Truth Social’ account, Trump threatened 100 per cent tariffs on BRICS nations, if they plan a BRICS currency.

His post said: “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER. We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”

He also said: “There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!”

February aluminium futures were trading at ₹251.55 on MCX during the initial hour of trading on Friday against the previous close of ₹252.10, down by 0.22 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), February kapas contracts were trading at ₹1458 in the initial hour of trading on Friday against the previous close of ₹1407, up by 3.59 per cent.

April turmeric (farmer polished) futures were trading at ₹13628 on NCDEX in the initial hour of trading on Friday against the previous close of ₹13638, down by 0.07 per cent.

Related Topics