Oil prices changed amid US tariff suspension for Mexico and Canada.

US President Donald Trump temporarily suspended high tariffs for Mexico and Canada, the main oil suppliers to the US. This led to a decrease in oil prices.

This decision shocked oil prices - Brent futures fell by 0.7% to $75.46 per barrel, while US oil West Texas Intermediate (WTI) dropped by 1.2% to $72.27.

Donald Trump set a condition for strengthening border security for Mexico and Canada, which was accepted by Justin Trudeau and Claudia Sheinbaum. As a result, tariffs on energy imports from Canada will decrease by 25% instead of 10%.

'US tariffs have become a major topic on global markets,' said IG market strategist Yeap Jun Rong. 'Oil prices will attempt to recover,' he added.

The Organization of the Petroleum Exporting Countries (OPEC+) decided not to increase production from April. However, ING analysts warn that Canada may be vulnerable to trade wars if it does not expand its export capabilities beyond the US by building more pipelines.

Investors will await the upcoming weekly data on US oil inventories to understand how it will affect prices. An increase in crude oil inventories and a decrease in gasoline and distillate stocks are expected.