Oil prices fall on new US administration plans

Oil prices fell significantly on Tuesday as markets assessed US President Donald Trump’s plans to boost US oil and gas production, as well as the postponement of new tariffs that were expected to be implemented immediately.

Brent crude futures fell $1.52, or 1.9%, to $78.63 a barrel during midday trading, while US West Texas Intermediate crude futures fell $2.14, or 2.8%, to $75.74 a barrel, noting that US markets were closed yesterday, Monday, due to a public holiday.

The rise in the US dollar has increased pressure on oil prices, as the strong dollar makes oil more expensive for investors holding other currencies. In this context, Tamas Varga, an analyst at PVM, said that the current decline is likely related to Trump’s plans and the recovery of the dollar.

Varga noted that the dollar regained its strength after Trump’s comments about imposing tariffs on imports from Canada and Mexico, adding that the strength of the dollar negatively affects oil prices.