Oil prices on track for weekly losses; focus on Trump tariffs,

Investing.com -- Oil prices edged higher Friday, but were on course for a second week of losses as traders fretted over the prospect of trade tariffs under U.S. President Donald Trump. 

At 08:10 ET (13:10 GMT), Brent oil futures expiring in March rose 0.4% to $77.21 a barrel, while West Texas Intermediate crude futures rose 0.5% to $73.13 a barrel.

Both contracts were trading around 2% lower for the week, their second straight week of losses. 

Trump tariffs on Canada, Mexico in focus 

Trump said on Thursday that he intends to proceed with his plans to impose 25% import tariffs on Canada and Mexico, over their alleged role in the flow of illegal immigrants and fentanyl into America. 

The US President said he was still debating whether oil imports would be included in the tariffs. Canada is the biggest supplier of oil to the US, accounting for 60% of imports, while Mexico accounts for 10% of US oil imports.

Import tariffs on oil could sharply increase US gasoline prices, especially given that Trump’s agenda of increasing domestic production will take time to execute. The President could avoid oil import tariffs due the implications of higher inflation.

Still, any tariffs on oil are expected to dent demand and further pressure crude markets. 

Trump has also threatened a 10% duty on China, which could come into effect from Saturday.

PCE data, OPEC meeting awaited 

Beyond Trump, focus on Friday was also on key PCE price index data for December. The print is the Federal Reserve’s preferred inflation gauge and is likely to factor into expectations for interest rates.

The Fed had this week kept rates steady and struck a hawkish chord on future easing, citing concerns over sticky inflation and the inflationary impact of Trump’s policies. 

The market is also awaiting the OPEC+ meeting scheduled for Feb. 3.

Kazakhstan’s energy minister said on Wednesday that the group is set to discuss Trump’s plans to raise US oil production and take a joint stance on the matter at next week’s OPEC+ meeting.

(Ambar Warrick contributed to this article.)

Focus was also on key U.S. PCE inflation data, due later in the day, for more cues on interest rates. The dollar rose in anticipation of the data, limiting gains in oil. 

The dollar was also boosted by Trump threatening the BRICS group of countries- which includes top importer China- with 100% tariffs over their attempts to replace the U.S. dollar. He also confirmed on Thursday that his 25% tariffs on Canada and Mexico were set to take effect from Saturday. 

Brent oil futures expiring in March rose 0