Oil steady as investors eye Trump 2.0 policies By Reuters

Written by Arathy Somasekhar and Jeslyn Lerh

SINGAPORE (Reuters) – Oil prices were little changed on Wednesday as markets weighed U.S. President Donald Trump’s declaration of a national emergency on his first day in office and its impact on supply.

Futures rose 9 cents to $79.38 a barrel at 0420 GMT, while US West Texas Intermediate crude futures (WTI) rose 1 cent to $75.84.

Contracts fell on Tuesday after Trump laid out a comprehensive plan to increase oil and gas production, including by declaring a national emergency to allow urgent permits, roll back environmental protections, and withdraw the US from Paris climate treaty.

“Market participants are trying to digest the mixed signals that Trump 2.0 is bringing to the oil price scene,” said Yeap Jun Rong, market strategist at IG.

“It remains to be seen in the near term whether his goal of filling the US policy reserve will be realized,” said Yeap, adding that attention is on his future tariff policies.

Trump’s latest energy plan is unlikely to spur near-term investment or reverse US manufacturing growth, analysts say Morgan Stanley (NYSE:) wrote in a note, adding that, however, it could cause a moderate erosion of demand for the refined product.

Analysts also questioned whether Trump’s promise to replenish the stockpiles would change the demand for oil since the Biden administration was already buying oil for emergency storage.

Investors also remained cautious as Trump’s trade policy remained unclear. He said he was considering imposing tariffs of 25% on goods from Canada and Mexico from February 1, instead of his first day in office as he had previously promised.

The President of the United States also added that his administration will “probably” stop buying oil from Venezuela, among the country’s top oil suppliers.

Meanwhile, a rare winter storm hit the US Gulf Coast on Tuesday, and much of the United States remained in deep ice.

North Dakota’s oil production is estimated to be down between 130,000 and 160,000 barrels per day (bpd) due to severe weather and related operational problems, state pipeline officials said on Tuesday. .

The storm’s impact on oil and gas activities remained limited in Texas, with few disruptions to gas flows, few power outages and plenty of fuel on tap, as many roads and highways are closed. they remained closed.