“Oil prices were little changed on Jan. 22 as markets assessed U.S. President Donald Trump’s declaration of an energy emergency on his first day in office and its impact on supplies.”, — write: epravda.com.ua
Oil prices were little changed on Jan. 22 as markets assessed U.S. President Donald Trump’s declaration of an energy emergency on his first day in office and its impact on supplies. This is reported by Reuters. Brent crude futures were up 9 cents at $79.38 a barrel, while U.S. West Texas Intermediate (WTI) crude was up 1 cent at $75.84. Contracts fell on Tuesday after Trump laid out a sweeping plan to maximize oil and gas production, including by declaring an energy emergency to speed up permitting, repealing environmental protections and pulling the U.S. out of the Paris climate accord.Advertisement: “Participants the market is trying to digest the mixed signals that Trump 2.0 brings about the trajectory of oil prices,” said Yip Jun Rong, market IG strategist. “In the near term, the focus will be on whether his goal of replenishing US strategic reserves will be met,” he said, adding that the focus is on his future tariff policy. Trump’s latest energy policy is unlikely to boost near-term investment or change U.S. output growth, analysts at Morgan Stanley wrote, adding that it could, however, cushion a potential drop in oil demand.Advertisement: Analysts also questioned whether Trump’s pledge to replenish the strategic reserve will change the demand for oil as the Biden administration has already been buying oil for an emergency stockpile. Investors also remained cautious as Trump’s trade policy remained unclear. He said he plans to impose a 25% tariff on imports from Canada and Mexico starting Feb. 1, rather than on his first day in office as he previously promised. The US president also added that his administration would “probably” stop buying oil from Venezuela, which is one of the country’s largest oil suppliers. Meanwhile, a rare winter storm swept near the U.S. Gulf Coast on Tuesday, leaving much of the United States with bitter cold. Oil production in North Dakota fell by 130,000 to 160,000 barrels per day (bpd) due to extreme cold and related operational difficulties, the state’s pipeline authority said on Tuesday. The storm’s impact on oil and gas operations in Texas remained limited, with minimal disruptions to gas flows, minor power outages and ample gasoline at the pumps as many roads and highways remained closed. We will remind: India is likely to increase purchases of American oil and gas after US President Donald Trump announced his intention to maximize production of these resources.