January 22, 2025 (MLN): Oil prices were little changed in early trading on Wednesday as markets weighed U.S. President Donald Trump's declaration of a national energy emergency on his first day in office and its impact on supply.
Brent crude futures increased by $0.50, or 0.63%, to $79.79 per barrel.
West Texas Intermediate (WTI) crude futures rose by $0.50, or 0.66%, to $76.33 per barrel by [3:35 pm] PST.
Trump on Monday laid out a sweeping plan to maximize oil and gas production, including declaring a national energy emergency to speed permitting and rolling back environmental protections.
He also announced the withdrawal of the U.S. from the Paris climate pact, as Reuters reported.
The policy is, however, unlikely to spur near-term investment or change U.S. production growth, analysts at Morgan Stanley wrote in a note.
They added that it could, however, moderate the potential erosion of refined product demand.
Analysts also questioned if Trump's promise to refill the strategic reserve would make any changes to oil demand.
This is because the Biden administration was already purchasing oil for the emergency stockpile.
Investors also remained cautious as Trump's trade policy remained unclear.
He 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.
The U.S. president also added that his administration would "probably" stop buying oil from Venezuela, among the top suppliers of oil to the country.
Meanwhile, a rare winter storm churned across the U.S. Gulf Coast on Tuesday, and much of the United States remained in a dangerous deep freeze.
North Dakota's oil production was estimated to be down by between 130,000 and 160,000 barrels per day (bpd) due to extreme cold weather.
The state's pipeline authority mentioned on Tuesday that these conditions caused related operational challenges.
The impact of the storm on oil and gas operations remained limited in Texas, with minimal interruptions in gas flows and few power outages.
There were also plenty of gasoline inventories at the pump, although many roads and highways remained closed.
Copyright Mettis Link News
Posted on: 2025-01-22T15:47:58+05:00
