DTN Oil Update
Oil Futures Dipped Following Tariff Delay
HOUSTON (DTN) -- Oil futures dipped Thursday morning after the Trump administration announced a 30-day pause in the implementation of retaliatory tariffs on Canada and Mexico.
The front-month NYMEX WTI futures contract saw a steep decline this morning as it dropped by $2.36 at $70.80 per barrel (bbl) while the April ICE Brent futures contract fell by $1.71 to $74.25 bbl.
The U.S. Dollar Index dropped by 0.68% to 108.20 against a basket of foreign currencies.
On Feb. 1, the Trump administration implemented a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China, on claims that those countries failed to stop illegal immigration and fentanyl trafficking into U.S. territory.
However, U.S. President Donald Trump announced Feb. 3 a delay in the implementation of such tariffs after reaching separate agreements with Canada's Prime Minister Justin Trudeau and Mexico's President Claudia Sheinbaum.
However, no delays were announced regarding tariffs imposed on imports of Chinese products. As a response, China today has filed a complaint with the World Trade Organization's dispute settlement mechanism protesting the U.S. trade measures.
"China firmly opposes the U.S. actions and urges the U.S. side to immediately rectify its wrongdoings," the Chinese news agency Xinhua reported this morning that a spokesperson from the Ministry of Commerce said.
Downstream, the March RBOB futures contract fell by $0.0684 to $2.0493 gallon while ULSD futures contract for March delivery declined by $0.0789 to $2.3842 gallon.
The national average for retail regular gasoline declined a second week, falling 2.1cts to $3.082 per gallon as of Monday (2/3), 5.4cts lower than the corresponding week in 2024, according to the latest data from the Energy Information Administration.
The U.S. average on-highway diesel fuel price edged up 0.1ct to $3.660 per gallon as of today, according to the latest Energy Information Administration data. The price point is 23.9cts lower than the same week in 2024.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com
