02:30 PM EST, 01/20/2025 (MT Newswires) -- Oil prices fell in Monday electronic trade with markets closed for the Martin Luther King Day holiday as Donald Trump backed down on threats to impose steep tariffs on imports from China, Canada and Mexico, while promising to take steps to boost U.S. oil production.

West Texas Intermediate crude for February delivery was last seen down US$0.90 to US$76.98 per barrel, while March Brent crude traded US$0.83 lower to $79.96.

The rise comes amid reports that rather than imposing a 60% tariff on imports from China, and 25% on goods from Canada and Mexico, Trump will instead direct federal agencies to evaluate the three countries' trade relationships with the United States.

Trump, sworn in as President Monday, will also issue executive orders aimed at raising oil production from Alaska while again withdrawing from the Paris Climate Accord, the Wall Street Journal reported.

Lower geopolitical risk also eased prices following the ceasefire in the Gaza Strip between Israel and the Hamas militant group.