US benchmark West Texas Intermediate (WTI) crude oil prices traded around $75.00 on Thursday (1/23). WTI prices continued to fall to a one-week low as traders assessed how US President Donald Trump's proposed tariffs could impact energy demand and the global economy.

On Monday, Trump said he was considering imposing 25% tariffs on Canada and Mexico while discussing imposing 10% tariffs on Chinese imports on February 1. The tariffs could potentially slow economic growth and drag the black gold lower.

"The potential sanctions under the new Trump administration remain unclear, with potential tariffs related to Canada and Mexico now appearing to be at the forefront of traders' uncertainty," said analysts at energy advisory firm Ritterbusch and Associates.

The American Petroleum Institute's (API) weekly report showed that crude oil stocks in the United States rose by 1 million barrels for the week ending January 16, compared with a decline of 2.6 million barrels in the previous week.

According to the API, crude inventories fell by more than 12 million barrels in 2024, with the downward trend continuing into the new year.

On Tuesday, the US Energy Information Administration (EIA) said that oil prices are expected to decline this year and next as weak economic activity and energy transition efforts weigh heavily on the US and China. "Strong global growth in petroleum and other liquids production and slower demand growth are exerting downward pressure on prices," EIA economists said. (AL)

Source: FXstreet