Market reacts to tariff whiplash
March 7, 2025
Tariffs on USMCA-compliant goods have been delayed on Mexico until April and then later in the trading day (after the close) US tariffs on some Canadian imports were also delayed until April, but this did not include crude oil.
The president of Canadian Natural Resources Ltd, Scott Stauth, said Canada must look at ways to diversify its oil export markets, both in the short term as well as the exploring a long-term solution like a new east-west pipeline. Canadian Natural supports plans made public recently by pipeline companies Enbridge Inc. and Trans Mountain Corp to improve oil transport capabilities through optimizing and de-bottlenecking existing lines.
Russia Deputy Prime Minister said OPEC+ may only raise production for one month and then stop. This news is supportive of crude prices but must also be seen with some caution as OPEC+ is good at playing the game and always states that they can change their minds as the market conditions warrant.
The US jobs report out this morning showed that 151,000 new jobs were created in February and the average estimates was for 160,000 new jobs.
Energy prices are trading higher this morning and today will likely have short covering into the weekend as there is still a ton of uncertainty surrounding all these markets.