Oil prices flow 3% while Trump strikes a break from Canada’s prices

Only two days after announcing radical sanctions of 25% on almost all Canadian imports as well as all Mexican imports, President Trump promised to suspend the implementation of samples for 30 days after urgent discussions with the leaders of the two country.

The oil markets reacted, WTI lowering 3.3% and Brents down 2.3%. Natural gas prices also fell significantly, which allowed 5.2% at the start of negotiations.

The talks, according to a Reuters report, led to Canada and Mexico commitments to increase border controls, in particular in deployment of more staff to stem the flow of migrants and intensify measures to control drug trafficking.

“As president, it is my responsibility to ensure the safety of all Americans, and I do that exactly. I am very satisfied with this initial result ”, Trump saidAdding that he planned to negotiate new trade agreements with Canada and Mexico over the next 30 days.

Canada is the largest heavy brut supplier to American refiners, exporting it at a rate of almost 4 million barrels per day, making it the largest gross oil exporter in the United States in general. Mexican crude oil exports north of the border are much smaller, less than half a million barrels per day, but they still understand the second most of foreign oil in the mixture of American refiners. This fact may have played a role in Trump’s desire to quickly negotiate new commercial transactions before the start of prices and reprisals.

Such an agreement with China, however, does not seem to be to come, which means that additional 10% prices on Chinese imports must still take effect today. Reuters quoted a White House spokesman, saying that President Trump had no interview with Xi Jinping in China until the end of the week.

“China, hope, will stop sending us fentanyl, and if it is not the case, the prices will go much higher,” threatened Trump. China has called American fentanyl and not a Chinese problem.

By Irina Slav for Oilprice.com

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