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 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.

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.

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.

Oil prices fell on Tuesday after U.S. President Donald Trump declared a national energy emergency on his first day in office, raising concerns of higher U.S. output in a market widely expected to be oversupplied this year.