Oil fluctuated after President Donald Trump threatened tariffs on China and the European Union, while traders continued to assess the fallout from unprecedented US sanctions on Russia.

Oil futures headed lower on Wednesday, with U.S. benchmark prices on track to notch a fourth straight session decline as investors weighed the potential impact of President Donald Trump’s energy policies and tariff threats.

Oil prices edged higher on Wednesday as the dollar weakened, with traders closely watching U.S. inventories, President Donald Trump's proposed tariffs and the potential impact of the national energy emergency he declared on his first day in office.

Oil futures headed lower Tuesday as traders weighed President Donald Trump’s vow to boost already record U.S. crude output against the threat of a steep tariff on Canadian imports and a call to replenish the Strategic Petroleum Reserve.

The dollar rebounded after Trump's comments on imposing tariffs against Mexico and Canada, Varga added, noting that the dollar's strength is negatively impacting oil prices. Trump said he was thinking of imposing 25% tariffs on imports from Canada and Mexico from Feb. 1, rather than on his first day in office as previously promised.

President Donald Trump’s repeated threats to slap steep tariffs on Canada and other friendly nations have left Toronto with some of the world’s worst-performing oil and gas stocks.