WTI tumbles to near $75.50 as Trump plans to boost oil output, impose tariffs

• WTI price extends its downside to around $75.55 in Wednesday's Asian session.
• Trump's announcement of tariffs and plan to increase US oil and gas output weigh on the WTI price. 
• EIA projected a lower oil price in 2025 amid the uncertainties.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $75.55 on Wednesday. The WTI price edges lower as US President Donald Trump weighs imposing tariffs on key trade partners and vowing to increase US oil and gas production.

Trump declared a national energy emergency on Monday and used the authority to rapidly approve new oil, gas, and electricity projects that would normally take years to get permits. This raises the concerns of higher US output in a market widely expected to be oversupplied this year. 

Additionally, Trump said that he was considering imposing 25% tariffs on Canada and Mexico while discussing imposing a 10% tariff on goods imported from China on February 1. Tariffs could potentially slow economic growth and exert some selling pressure on black gold. 

The US Energy Information Administration (EIA) suggested on Tuesday that Oil prices are expected to decline both this year and next as weak economic activity and energy transition efforts weighed heavily on the US and China. "Strong global growth in production of petroleum and other liquids and slower demand growth put downward pressure on prices," noted EIA economists.