05:06 AM EST, 01/30/2025 (MT Newswires) -- Crude oil prices declined as markets braced for potential tariffs imposed by U.S. President Donald Trump on Canada and Mexico.

Brent crude lost 0.4% to US$76.27/barrel and West Texas Intermediate crude fell 0.4% to US$72.32/b at last look early Thursday.

Markets are also awaiting a meeting of the Organization of the Petroleum Exporting Countries and allied producers on Feb. 3 where members are set to discuss Trump's efforts to boost U.S. oil production, Reuters said in a Thursday report.

Trump intends to make good on his promise to impose tariffs on Canada and Mexico on Feb. 1, White House spokeswoman Karoline Leavitt said Tuesday. Howard Lutnick, Trump's nominee to run the Commerce Department, said Wednesday that tariffs can be avoided if the countries act swiftly to close their borders to fentanyl and slow China's advancement in AI, the report said.

The tariff announcement is not expected to make a big impact on oil markets as traders have already priced in the potential move, Reuters quoted IG market analyst Tony Sycamore as saying.

Meanwhile, U.S. crude oil inventories jumped 3.5 million barrels last week, roughly in line with estimates, as winter storms hit demand, Reuters reported, citing data from the U.S. Energy Information Administration.