Oil prices fell in Monday’s morning session as traders await U.S. President-elect Donald Trump’s inauguration in the hope of some clarity on his policy agenda. Brent crude for March delivery was down 1.5% to trade at $79.66 per barrel at 11.20 am ET while WTI crude for February delivery declined 1.8% to $76.46 per barrel. According to PVM oil analyst Tamas Varga, the price declines can be chalked up to the huge uncertainty over the incoming president’s new policies.
The European Union and Mexico have agreed to a revamped free-trade agreement days before Trump begins a second term. Mexico, in particular, has been working to revamp the trade deal with the EU ahead of Trump’s inauguration as a way to show strength before the review of the US-Mexico-Canada trade agreement, known as USMCA. The U.S. is, by far, Mexico’s biggest trade partner, accounting for 83% of Mexico’s trade relationship. Trump has criticized the EU’s trade practices and said he would impose duties on exports by the bloc. He’s also said he’d impose 25% tariffs on goods from Mexico.