The oil market’s attention is slowly turning away from US sanctions against Russia towards President Trump’s potential trade policy, which saw Brent settle below US$80/bbl yesterday, ING’s commodity analysts Warren Patterson and Ewa Manthey note.

Trade and tariff risks are growing

“The president has reiterated his threats to impose a 25% tariff on imports from Canada and Mexico, potentially by 1 February.”

“Overnight, he also threatened 10% tariffs on China in retaliation to fentanyl flows from the country, which has kept some pressure on oil prices in early morning trading in Asia today. Clearly, trade and tariff risks and the potential for retaliation are growing.”