Oil set for weekly losses as US set to impose tariffs on Canada, Mexico

Oil prices eased on Friday after the White House said U.S. will impose 25% tariffs on Canada and Mexico on Saturday.

Brent crude futures for March, which expire on Friday, were down 7 cents at $76.81 a barrel by 1:38 p.m. EST(1638 GMT). The more actively traded second month futures were down 6 cents, at $75.84.

U.S. West Texas Intermediate crude eased 12 cents, or 0.2%, to $72.61.

For the week, the Brent and WTI benchmarks were set for declines of 2.1% and 2.4%, respectively.

The White House said the Feb. 1 deadline still holds, adding that there was no update on exemptions for certain imports.

Trump will include a process for Canada and Mexico to seek specific exemptions for certain imports, sources had told Reuters, adding that new tariffs would become effective on March 1.

Crude futures continue to drift as traders await the outcome of Trump's tariff threats, said Dennis Kissler, senior vice president of trading at BOK Financial.

Canadian crude is used by many U.S. Midwest refineries and a curtailed flow will likely place an upward bias on fuel prices, he added.

Canada and Mexico are the two largest crude oil exporters to the United States, but it is unclear if oil would be included among the tariffs. Trump said on Thursday he would soon decide whether to exclude oil imports from the tariffs.

Tariffs would likely result in large U.S. refinery run cuts, said Energy Aspects analyst Livia Gallarati.