Oil prices changed a little on Wednesday as markets weighed Trump’s declaration of a national energy emergency on his first day in office and its impact on supply.
Brent crude futures rose 9 cents to $79.38 a barrel by 0420 GMT, while WTI crude futures (WTI) rose 1 cent to $75.84.
Contracts closed lower on Tuesday after Trump laid out a sweeping plan to maximize oil and gas production. The plans include declaring a national energy emergency to speed up the process, rolling back environmental protections, and withdrawing the U.S. from the Paris climate agreement.
In the short term, the market’s focus will be on whether the U.S. will achieve its goal of replenishing its strategic reserves, with attention turning to upcoming tariff policies.
Trump’s latest energy policy may not do much to spur investment or change U.S. manufacturing growth in the near term. However, it could reduce the potential erosion of refined product demand.
Analysts also question whether Trump’s promise to fill the strategic reserve, which is not new, will affect oil demand. The Biden administration has already been buying oil for emergency stockpiles.
Investors also remained cautious as Trump’s trade policy remains uncertain. Trump said he was considering imposing 25% tariffs on imports from Canada and Mexico starting on February 1, rather than on his first day in office as he had previously promised.
The US president also added that his administration would “probably” stop buying oil from Venezuela, one of the country’s top oil suppliers.
Meanwhile, the US Gulf Coast was hit by a rare winter storm on Tuesday, sending much of the US into a dangerous cold snap.
North Dakota’s oil production is estimated to have fallen by between 130,000 and 160,000 barrels per day (bpd) due to extremely cold weather and related operational challenges.
The storm’s impact on oil and gas operations in Texas was limited, with minimal disruptions to gas flows, few power outages, and ample supplies of gasoline at the pumps because many roads and highways were closed.
