RoydadNaft –  The price of Brent crude oil rose by 38 cents, or 0.49%, today, reaching $77.25 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude increased by 60 cents, or 0.82%, trading at $73.33 per barrel.

According to  Reuters, oil prices rose on Friday as markets assessed the potential impact of tariffs proposed by former U.S. President Donald Trump on imports from Mexico and Canada, the two largest crude oil suppliers to the United States. These tariffs are expected to take effect within the next two days.

Over the past week, Brent crude has declined by 1.3%, while WTI crude has dropped by 1.69%. However, in the first month of the new year, Brent crude gained 3.8%, and WTI rose by 2.3%. Brent crude recorded its best monthly performance since June.

Analysts attribute the weekly decline in oil prices mainly to growing concerns over Trump’s tariff proposal, which could potentially slow global economic growth. Trump has threatened to impose a 25% tariff on exports from Canada and Mexico to the U.S. starting Saturday if these countries do not curb the illegal trafficking of fentanyl across American borders.

It remains unclear whether crude oil imports will be subject to these tariffs. On Thursday, Trump stated that a decision on oil import tariffs from Canada and Mexico would be made soon.

According to the U.S. Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, Canada exported 3.9 million barrels of crude oil per day to the U.S. in 2023. Canada’s total oil exports that year amounted to 6.5 million barrels per day, while Mexico supplied 733,000 barrels per day to the U.S.

The heightened risk of supply disruptions due to the foreign policies of the new U.S. administration has kept oil prices elevated.

Analysts point to sanctions on Russia, the halt in oil purchases from Venezuela, and the U.S. government’s maximum pressure campaign against Iran as key geopolitical risks driving oil prices higher. Additionally, efforts to replenish the U.S. Strategic Petroleum Reserve (SPR) have increased oil demand, further complicating the market dynamics.

Markets are now awaiting the outcome of the OPEC+ coalition meeting on February 3. New U.S. sanctions on Russian oil have removed millions of barrels from global supply, potentially forcing OPEC+ producers to adjust their output strategy.

Kazakhstan’s Energy Minister stated on Wednesday that the OPEC+ alliance plans to discuss Trump’s proposals for increasing U.S. oil production and adopt a unified stance on the matter.