Oil stabilizes amid anticipation of American fees torn on Canada and Mexico

Oil prices witnessed stability, in early trading on Thursday, with markets anticipating a possible American fee on Mexico and Canada, the largest supplier of crude oil for the United States.

Market

Brent crude futures increased seven cents, or 0.1 percent, to $ 76.71 a barrel, by 0122 GMT. US West Texas Intermediate crude futures rose 17 cents, or 0.2 percent, to $ 72.79, according to Reuters data.

US crude futures settled yesterday, Wednesday, at the lowest price this year.

White House spokeswoman, Caroline Levitte, told reporters on Tuesday that US President Donald Trump is still planning to fulfill his promise to impose customs duties on Canada and Mexico on Saturday.

Trump’s candidate for the position of Ministry of Commerce, Howard Lootnik, said yesterday, Wednesday, that Canada and Mexico can avoid customs duties if they move quickly to close their borders in front of the fentanel.

On the request, data from the US Energy Information Administration showed on Wednesday that crude oil stocks in the United States increased by 3.46 million barrels last week, with refineries decreased for the third week in a row.

Analysts expected in a Reuters poll an increase of 3.19 million barrels.

The Federal Reserve (the US Central Bank) remained interest rates unchanged, on Wednesday, and the bank did not provide any details about the date of reducing borrowing costs, which may enhance economic activity and demand for crude.

Dealers are also awaiting the joint ministerial monitoring committee meeting in the OPEC+ scheduled on February 3. The group, which includes the Organization of Petroleum Exporting Countries (OPEC) and allies, including Russia, intends to increase production from April.

Last week, Trump called OPEC+ to reduce oil prices. The group has not yet responded, but delegates have said that it is not likely to change the production policy at the February meeting, according to Reuters.