Oil prices are steady as markets weigh Trump’s output outlook, strong tools by Investing.com

Investing.com- Oil prices were steady in Asian trading on Wednesday after paring losses this week on US President Donald Trump’s declaration of a national emergency to boost energy production.

But crude has been holding strong in recent weeks, as tough US sanctions on Russia’s oil industry have given the prospect of stronger future supply. Oil prices also rose sharply as they advanced, announcing that the markets were firm.

Trump remained the main point of focus for the markets, as the President also raised the possibility of an increase in trade tariffs against major economies, especially the largest oil producer Canada and Chinese imports.

which expires in March was slightly lower at $79.24 a barrel, while it was down 0.2% to $75.69 a barrel at 20:34 ET (01:34 GMT).

Traders are now looking to upcoming US inventory data for more information on supply.

Trump declares a national emergency to increase production

Trump declared a national emergency on Monday to significantly increase US energy production – one of his first steps after taking office.

The president signed an executive order outlining this measure, which allowed more production from domestic producers, and reduced climate change policies imposed by the administration from Biden. Trump also said the US would withdraw from the Paris climate accords.

Although Trump did not specify how much oil production would increase, analysts said the move is unlikely to trigger a near-term supply increase.

Traders were also wary of Trump’s trade policies, after the President raised expectations of 10% tariffs on China and 25% tariffs on Canada and Mexico.

China was a major concern for oil markets, as increased economic pressure in the country could reduce its appetite for crude oil.

Russia sanctions, cold weather supports oil

The latest US sanctions against the Russian oil industry – the most aggressive yet – are expected to stabilize oil markets in the near future, especially since the US has imposed sanctions against Russian tankers of oil.

This severely limits Moscow’s ability to distribute crude, and could see Asian buyers rush to find new sources of oil, or pay higher shipping costs to import Russian fuel.

The cold weather in the US and Europe is also expected to boost demand, while hampering production in parts of the US.

But the cold weather is also expected to hamper travel in the two areas.