Canada & Mexico Tariffs: Yesterday, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum announced their agreement to enhance border enforcement in response to Trump’s call for stricter measures against immigration and drug smuggling. As a result, the U.S. will delay the implementation of 25% tariffs on both countries and a 10% tariff on energy imports from Canada for 30 days. These tariffs were initially set to take effect today.

OPEC+: The group has decided to maintain its strategy of gradually increasing oil production starting in April. Additionally, they have excluded the U.S. Energy Information Administration from their monitoring sources. During an online meeting, the OPEC+ Joint Ministerial Monitoring Committee decided to update the list of consultants and firms used to monitor its production, known as secondary sources. An OPEC+ source mentioned that the EIA was removed due to a lack of communication on the required information, emphasizing that the decision was not politically motivated. The U.S. government did not immediately respond to a request for comment.

China: A 10% import duty on Chinese goods, ordered by President Donald Trump, takes effect today. China has announced its intention to challenge the tariffs at the World Trade Organization but has also indicated a willingness to negotiate. Trump mentioned yesterday that he plans to speak with China within the next 24 hours. In response to the imposed tariffs, China’s Finance Ministry announced it would implement levies of 15% on imports of U.S. coal and LNG, and 10% on crude oil, farm equipment, and certain automobiles, starting February 10.

Market Overview: In early morning trade we are basically eliminating yesterday's gains with today's losses. The cause for downward movement comes from yesterday afternoon we learned that tariffs have been delayed for 30 days as both Canada and Mexico ramp up border security. In other news, no surprises from OPEC+ in their decision to slowing increase output starting in April.  

WTI Crude Daily Candlestick Chart

The chart above shows WTI crude trade values back to the beginning of 2024. We can see that since the beginning of 2025 we have experienced some very volatile levels with WTI trading as high as $80.77 on 1/15/25 and as low as $71.62 which represents today's current trade level. We should expect the trade channel between $75 a barrel and $70 a barrel to lend both resistance and support respectively. Should the market break through $70, that could indicate a good buying signal for end users.  

Energy prices started the day posting significant loses after the news of a 30-day delay in U.S. tariffs for both Canada and Mexico taking most of yesterday's strong gains away. However, later in the morning, President Donald Trump reinstated his “maximum pressure” campaign on Iran, aiming to reduce Iranian oil exports to zero in efforts to stop Tehran from obtaining nuclear weapons. Following the news on Iran, the complex saw a quick rally but was still able to settle in the red at the closing bell.  WTI was pushing close to the solid support level of $70 a barrel however was not able to break through, trading as low as $70.67 today. It has been a roller coaster start to the week, and we can most likely expect the ride to continue as the days go on.