Oil Prices Fall After Colombia’s Tariff Threat Is Reversed

Oil prices retreated on Monday after the Trump administration pulled back from sanctions threats against Colombia over illegal immigration, alleviating concern about oil supply disruptions. 

Data from analytics firm Kpler shows that Colombia last year sent about 41% of its seaborne crude exports to the U.S. Brent crude for March delivery slipped 1.99% to trade at $76.94 per barrel at 9.50 am ET while WTI crude for February delivery fell by 2.2% to change hands at $73.02 per barrel. 

“The Government of Colombia has agreed to all of President Trump’s terms, including the unrestricted acceptance of all illegal aliens from Colombia returned from the United States, including on U.S. military aircraft, without limitation or delay,” White House press secretary Karoline Leavitt said in a statement late on Sunday.

Washington swiftly reversed plans to impose tariffs and sanctions on Colombia after the country agreed to accept deported migrants from the United States. 

While the issue has been settled for now, it has left the market jittery about Trump’s ongoing muscle-flexing.