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Canadian Oil Rallies on Signs Trump Will Hold Off on Tariffs - BLOOMBERG
(Bloomberg) -- Canadian oil prices rallied on signs US President-elect Donald Trump won’t immediately impose tariffs on the country’s crude.
Western Canadian Select crude for delivery in the second quarter traded at $14 a barrel less than US benchmark West Texas Intermediate oil on Monday, a smaller discount than the $16-a-barrel gap on Friday, according to a person familiar with prices. The discount on WCS for March delivery narrowed to $12.90 a barrel from $14.75.
Trump won’t institute tariffs on his first day, but will instead call for federal agencies to study tariff policies and the US’s trade relationships with China, Canada and Mexico, according to incoming officials for the Trump White House. Trade duties could be imposed later, in the coming weeks or months.
Canadian crude prices weakened last week after Alberta Premier Danielle Smith warned Canadians to prepare for tariffs on all of the country’s exports to the US, including oil, after meeting with Trump in Florida.
Light Canadian crudes also showed signs of rebounding. The discount on mixed sweet crude for March delivery narrowed to $4.50 a barrel, from $7.50.
