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.

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.