Oil prices have fallen below $80 per barrel, a decline driven by recent trade and energy policies from U.S. President Donald Trump. Brent crude, the global oil benchmark, dipped 0.6%, while the U.S. benchmark, West Texas Intermediate (WTI), dropped 0.8% to $75.34 per barrel.
Trump’s move to boost domestic oil production by rolling back environmental restrictions has calmed fears of supply shortages, further pushing prices down. In addition, his plans to impose a 25% tariff on oil imports from Canada and Mexico, as well as a 10% tariff on Chinese imports, are adding pressure to oil prices. Analysts fear these tariffs could drive up U.S. domestic prices while reducing demand, contributing to the downward trend.
However, cold weather in the U.S. and Europe is increasing the demand for heating fuel, offering some support to oil prices. Severe winter conditions have disrupted daily oil production in North Dakota, with output dropping by up to 160,000 barrels, sparking supply concerns.
Meanwhile, the European natural gas market has seen sharp price increases due to outages at the Freeport LNG export terminal in the U.S., further straining global energy markets. With EU gas storage levels falling, European nations are scrambling to secure enough fuel for the winter.
