WTI is trading about $ 73.00, and the upward trend appears due to potential supply concerns
- WTI can be estimated due to possible show disorders after Trump’s tariff in Canada and Mexico.
- Canadian energy products will bear a 10 % duty, while Mexican energy imports will undergo a 25 % complete tariff.
- Opec+ is unlikely to deviate from its current plan for a gradual increase in production when it meets on Monday.
The edges of oil prices in West Texas Medium (WTI) are less than $ 73.00 a barrel during the Asian session on Monday. However, concerns about potential supply disorders from Canada and Mexico – one of the largest suppliers of the United States (the United States) – provided support for crude oil prices, although the expectations of weaker fuel demand are limited.
On Saturday, US President Donald Trump announced a 25 % tariff for Canadian and Mexican goods, while China, the world’s largest oil importer, will face a 10 % tariff. Canadian energy products will be subject to a duty of 10 %, while Mexican energy imports will face a fully tariff by 25 %, according to White House officials.
These customs duties are scheduled to enter on Tuesday and will remain in place until the excessive fentian dose crisis is resolved. In response, Canada, Mexico and China have pledged to implement reprisal measures against extensive commercial restrictions.
Canada and Mexico are the largest sources of US crude imports, as it provides about a quarter of oil that is treated by US refineries in products such as gasoline and heating oil, according to the US Department of Energy. Industry sources told Reuters that the new definitions will increase the costs of the heavier raw grades for optimal refinery, which may reduce profitability and force production discounts.
Meanwhile, the organization of oil exporting countries and their allies (Opec+) is facing increasing pressure from Trump to reverse production cuts. However, OPEC+ Reuters delegates told the group to deviate from its current plan to gradually increase production when it meets on Monday.
Customs fees are common questions
Customs duties are useful customs duties on some imports of goods or a category of products. Customs duties are designed to help local producers and manufacturers to be more competitive in the market by providing the price feature on similar goods that can be imported. Definitions are widely used as fever tools, along with commercial barriers and import shares.
Although customs tariffs and taxes generate government revenues to finance public goods and services, they have many differences. Customs duties are pre -paid in the entry port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while customs duties are paid by importers.
There is a school of thought between economists regarding the use of definitions. While some argue that definitions are necessary to protect local industries and address commercial imbalances, others see them as a harmful tool that can push prices up in the long term and lead to a harmful commercial war by encouraging customs tariffs.
During the period before the presidential elections in November 2024, Donald Trump explained that he intends to use the customs tariff to support the American economy and American producers. In 2024, Mexico, China and Canada accounted for 42 % of the total imports of the United States. During this period, Mexico emerged as the best source with $ 466.6 billion, according to the American Statistical Office. Thus, Trump wants to focus on these three countries when imposing definitions. It is also planned to use the revenues created by definitions to reduce personal income taxes.
