- Oil prices hold steady near key support at $74.00 as markets react to Trump’s reversal of proposed tariffs on Colombia.
- US President Trump calls on OPEC to lower oil prices.
- Weak manufacturing activity in China continues to pressure the oil demand outlook.
West Texas Intermediate (WTI) crude futures on NYMEX hold steady near $74.00 during Monday’s European session, supported by improved market sentiment after U.S. President Donald Trump withdrew tariff threats against Colombia. The reversal came after Colombia agreed to accept the return of illegal immigrants from the U.S.
Colombia is a significant exporter of seaborne crude to the U.S., and while the resolution is technically bearish for oil prices, WTI gained ground as markets reassessed the severity of Trump’s tariff threats. Last week, Trump also pulled back on proposed tariffs against China, suggesting that deals can be reached without imposing hefty tariffs, further signaling his strategic use of trade measures for negotiation leverage.
Despite these developments, the outlook for the U.S. Dollar and oil prices remains clouded. Trump urged OPEC to lower oil prices, emphasizing at the World Economic Forum (WEF) in Davos that reducing oil revenues could pressure Russia financially and bring an end to the Russia-Ukraine conflict.
Meanwhile, China’s weakening economic data continues to dampen oil demand prospects. The National Bureau of Statistics (NBS) reported a decline in the Manufacturing Purchasing Managers’ Index (PMI) to 49.1 in January, down from 50.1 in December, missing economists’ expectations for steady growth.
