“Oil continues to fall in price: investors are watching the policy of “Trump 2.0” Brent and WTI crude oil fell by 0.5-0.6% after Trump’s announcement of an energy emergency and plans to increase production. Investors are also concerned about possible tariffs on imports from Canada and Mexico.”, — write on: unn.ua
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Brent crude futures fell 36 cents, or 0.5%, to $78.93 a barrel at 07:30 GMT (09:30 Kyiv). WTI crude futures fell 46 cents, or 0.6%, to $75.37.
Prices fell on Tuesday after Trump laid out a sweeping plan to maximize oil and gas production, including declaring an energy emergency to speed up permitting, rolling back environmental protections and pulling the U.S. out of the Paris climate accord.
“Market participants are trying to digest the mixed signals that Trump 2.0 carries for the trajectory of oil prices,” said Yep Jun Rong, market strategist at IG.
“In the near term, attention will be focused on whether his goal of replenishing the strategic reserves of the United States will be fulfilled,” said Epp.
Trump’s energy policy is unlikely to spur near-term investment or change U.S. output growth, analysts at Morgan Stanley wrote in a note, adding that it could, however, curb a potential decline in oil demand.
Analysts also doubt whether Trump’s pledge to replenish the strategic reserve will change oil demand, as the Biden administration has already been buying oil for an emergency stockpile.
Investors, meanwhile, were cautious as Trump said he plans to impose 25% tariffs on imports from Canada and Mexico starting Feb. 1, rather than on his first day in office as previously promised.
“The oil market’s focus is gradually shifting from US sanctions against Russia to President Trump’s potential trade policies,” ING analysts said on Wednesday, adding that the energy sector was under pressure from the threat of rising tariffs.
The US president has said that his administration will “probably” stop buying oil from Venezuela, one of the country’s biggest oil suppliers.
Meanwhile, a rare winter storm hit the US Gulf Coast on Tuesday.
Oil production in North Dakota is down an estimated 130,000 to 160,000 barrels per day due to extreme cold weather and related operational problems, the state’s Pipeline Authority said Tuesday.
The storm’s impact on oil and gas operations in Texas remained limited, with minimal gas disruptions, minor power outages and plenty of gasoline at gas stations, while many roads and highways remained closed.
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