02:36 PM EST, 01/31/2025 (MT Newswires) -- West Texas Intermediate (WTI) closed lower on Friday as traders await clarity on whether the Trump Administration will include oil imports in its plan to begin imposing 25% tariffs on oil imports from Canada and Mexico on Feb.1.

WTI crude oil for March delivery closed down US$0.20 to settle at US$72.53 per barrel, while March Brent crude was last seen down US$0.06 to US$76.81.

Donald Trump on Wednesday told reporters he plans to impose tariffs on imports from the U.S. neighbors on Saturday, but said no decision had yet been made on whether to include oil imports in the scheme. Canada is the largest supplier of oil imports to the United States, shipping around 4.2-million barrels per day, 20% of U.S. consumption, to a network of U.S. refineries dependent on its heavy crudes. Mexico, the No.2 exporter, ships around 500,000 bpd to the U.S.

There is little consensus on whether the bulk of the tariff burden will be fall on Canadian oil producers or U.S. refiners, but higher U.S. gasoline prices, particularly in the Midwest are likely and could pressure the U.S. to remove the levies.

"There is a distinct possibility that, even if a tariff on imports of Canadian crude is imposed, it wouldn't last long - maybe a few weeks at most. Why? Few in the energy industry want the dislocations, the Trump administration doesn't want gasoline and diesel prices to increase, and Canadian officials would likely reach an accommodation with the president to give Trump the win he clearly wants. Then of course, there is the matter of a possible retaliation," RBN Energy noted.

The tariff threat also comes ahead of an OPEC+ ministerial meeting on Monday, which is expected to continue to back a plan to begin returning 2.2-million barrels per day of voluntary production cuts with monthly additions of 122,000 bpd for 18 months beginning in April,. However Trump's potential market disruptions and his call for the higher OPEC supply to cut prices may convince the group to revisit the scheme.