Crude Oil Prices Drop As EU Gas Prices Rise Due To U.S. Tariff Concerns

Oil prices fell on Wednesday as traders reacted to concerns over potential U.S. tariffs on Canadian and other oil suppliers, as well as increasing crude stockpiles.

Brent crude oil futures dropped to around $77 per barrel, while West Texas Intermediate (WTI) crude fell below $73.5 per barrel. The decline comes as President Donald Trump’s proposed 25% tariffs on Canada and Mexico, set to start on February 1, put pressure on Canadian oil prices. Canada is a major supplier of crude oil to the U.S.

At the same time, U.S. crude oil stockpiles increased by 2.86 million barrels, signaling a possible shift after weeks of decline. The Energy Information Administration (EIA) reported that crude inventories grew by 3.463 million barrels—more than the expected 3.2 million-barrel increase. Gasoline stocks also climbed by 2.957 million barrels, surpassing the predicted 1.5 million-barrel increase, while distillate inventories (including diesel and heating oil) fell by 4.994 million barrels, a sharper drop than the expected 2.1 million barrels.

Meanwhile, natural gas prices in Europe are climbing, nearing €50 per megawatt-hour, the highest level in four weeks. This increase is driven by colder weather boosting demand and supply disruptions from Norway due to maintenance work at key gas fields.

Forecasts predict lower wind speeds and cold temperatures, which typically increase the need for gas-fired power. Outages at Norway’s Gullfaks, Troll, and Aasgard fields are limiting supply, with Norwegian gas deliveries dropping to 313 million cubic meters on Wednesday—a slight decline from the previous day.

Europe’s gas storage levels are currently at 55.46% capacity, down from 71.79% at the same time last year. With winter in full swing, gas demand is expected to rise in the coming days.