Oil fluctuates as Trump’s rapid-fire trade moves rattle market

Oil fluctuated as investors reacted to rapid-fire moves on trade by the Trump administration, with the US threatening, and then holding off, on a broad package of curbs against Colombia.

Brent was lower near $78 a barrel, having pared a deeper intraday loss, while West Texas Intermediate was above $74. Following a dispute over migrants, President Donald Trump first ordered curbs against Bogota, before the White House paused the actions as the Colombian government agreed to all of Trump’s conditions.

Crude remains higher this year, after an earlier round of sanctions from the US on Russian oil and energy lifted physical prices, spurring some refiners in Asia to look for alternative supplies. Traders are now adjusting to a shifting mosaic of potential US actions against trade partners as Trump starts his second term. Aside from Colombia, Trump has threatened action against China, Canada, Mexico and the European Union, while also urging OPEC to produce more crude.

Colombia — which had at one point also ordered retaliatory sanctions against US goods — is the US’s fourth-biggest source of overseas oil, topping countries like Brazil, according to the Energy Information Administration. The latest data showed Colombia shipping more than 215,000 barrels a day to US ports.

“Trump’s actions matter to markets as it shows he is clearly credible on the use of aggressive tariffs,” said Chris Weston, head of research for Pepperstone Group, commenting before the White House statement saying the curbs had been put on ice given Colombia’s agreement.

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