Oil prices are rising due to Trump's threats to impose tariffs on Mexico and Canada.

According to Ukrinform, this is reported by Reuters.

The March futures for Brent crude oil, which expires on Friday, rose by 61 cents to $77.48 per barrel. The more actively traded April contract was priced at $76.37 per barrel, an increase of 48 cents.

American WTI (West Texas Intermediate) crude oil increased by 65 cents to $73.38.

Over the week, Brent may decline by 1.3%, while WTI could drop by 1.69%.

According to ANZ Bank analyst Daniel Hynes, investors are considering the possibility of U.S. tariffs alongside a series of directives and political statements.

Trump threatened on Saturday to impose a 25% tariff on Canadian and Mexican exports to the United States if these two countries do not stop fentanyl shipments across the U.S. borders.

It remains unclear whether the tariffs will include crude oil. On Thursday, Trump stated that he would soon decide whether to exempt Canadian and Mexican oil imports from tariffs.

In 2023, Canada exported 3.9 million barrels per day of crude oil to the U.S. out of a total import of 6.5 million b/d, while Mexico exported 733,000 b/d, according to the U.S. Energy Information Administration, a statistical division of the Department of Energy.

The heightened risk of supply disruptions due to the foreign policy of Trump’s new administration keeps prices elevated, Hynes noted.

“Sanctions against Russia, the halt of Venezuelan oil purchases, and maximum pressure on Iran will increase the geopolitical risk premium on oil,” said Hynes.

The market will be watching the upcoming OPEC+ meeting scheduled for February 3, as recent U.S. sanctions on Russian oil have deprived the world of more than a million barrels of supply, possibly prompting the group of producers to reconsider their production plans, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

The Minister of Energy of Kazakhstan stated on Wednesday that the group intends to discuss Trump’s plans to increase oil production in the U.S. and adopt a joint position on this matter at next week’s meeting.