OIL: Crude Market Reverses as US Agrees to Pause Mexico Tariffs for One Month

Crude front month futures are net down on the day in volatile trading following headlines that Mexico President Sheinbaum says the US agrees to pause tariffs for one month during which negotiations will take place. The delay was followed by confirmation from the White House.

• Crude time spreads are following the move lower with both the prompt and Jun25-Dec25 spreads reversing most of the rally seen following the initial announcement of tariffs.
• The WTI-Brent spread has widened slightly again back to around -$3.6/bbl.
• Mexican President Sheinbaum says had a good conversation with Trump which led to some accords.
• “She agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants”, Trump Truth Social.
• “I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a "deal" between our two Countries.”
  • Brent APR 25 down 0.3% at 75.45$/bbl
  • WTI MAR 25 down 0.2% at 72.4$/bbl
  • WTI-Brent down 0.61$/bbl at -3.59$/bbl
  • WTI MAR 25-APR 25 up 0.02$/bbl at 0.57$/bbl
  • WTI JUN 25-DEC 25 down 0.03$/bbl at 2.99$/bbl
  • US gasoline crack up 1.4$/bbl at 15.31$/bbl
  • US ULSD crack up 0.9$/bbl at 29.36$/bbl