Oil prices made their way higher on Wednesday as the U.S. dollar weakened, with traders closely watching national inventories, President Donald Trump’s proposed tariffs and the potential impact of the national energy emergency he declared on his first day in office.
Brent crude futures rose 43 cents, or 0.54%, to $79.72 U.S. per barrel. U.S. West Texas Intermediate crude futures climbed 45 cents, or 0.59%, to $76.28.
The greenback struggled to regain ground against major currencies, hovering close to two-week lows. A weaker dollar usually supports oil prices.
Trump said late on Tuesday that his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada could face levies of around 25%.
He also promised duties on European imports, without providing further details.
The U.S. president had said his administration would “probably” stop buying oil from Venezuela, among the top suppliers of oil to the country.
Trump laid out a sweeping plan to maximize domestic oil and gas production, including declaring a national energy emergency to speed permitting, rolling back environmental protections, and withdrawing the U.S. from the Paris climate pact.
Trump’s policy is unlikely to spur near-term energy investment or change U.S. production growth, analysts at Morgan Stanley wrote in a note, adding that it could, however, moderate potential erosion of refined product demand.
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