Commodities
Oil Sinks as Trump’s Commerce Pick Says Tariffs Can Be Avoided
- Canadian crude discount grazes six-month low on levy threat
- Federal Reserve holds rates steady, denting demand outlook
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Oil fell after President Donald Trump’s pick for commerce secretary suggested tariffs on Canada and Mexico aren’t a done deal.
West Texas Intermediate slid 1.6% to settle below $73 a barrel after Howard Lutnick said that the US’s two biggest trading partners can avoid new levies if they take action on illegal migration and fentanyl flows. Expectations that the tariffs will go into effect this weekend had earlier spurred a rally in oil futures and briefly pushed the discount for Canadian crude to the widest in six months, before narrowing after Lutnick’s remarks.