U.S. crude oil fell more than 2% on Tuesday, as President Donald Trump weighs imposing tariffs on key trade partners while vowing to boost domestic energy production.
U.S. crude oil lost $1.99, or 2.56%, to close at $76.89 per barrel, while global benchmark Brent fell 86 cents, or 1.07%, to settle at $79.29 per barrel.
Trump said after his inauguration Monday that his administration was considering imposing 25% tariffs on Canada and Mexico. Tariffs could potentially slow economic growth and impact fuel demand.
The president also issued a raft of executive actions aimed at boosting domestic fossil fuel production. Trump declared a national energy emergency, sought to roll back Biden-era restrictions on offshore drilling, and lifted the pause on new liquified natural gas exports.