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Oil prices steady as markets assess Trump policies
Oil prices were steady on Wednesday as markets assessed US President Donald Trump’s declaration of a national energy emergency on his first day in office and its impact on supply levels.
Brent crude futures rose 0.10% to $79.37 a barrel.
US West Texas Intermediate crude futures for March delivery fell 0.03% to $75.81 a barrel.
Trump unveiled a sweeping plan on Monday to boost US oil and gas production, including declaring a national energy emergency to speed up permitting, scrapping some environmental protections and withdrawing the US from the Paris climate agreement.
However, according to a note by Morgan Stanley analysts quoted by Reuters, these policies are unlikely to lead to increased investment in the sector in the near term or make significant changes to US production growth. They explained that these plans may only help mitigate a potential decline in demand for refined products.
Analysts also questioned the impact of Trump’s promise to replenish the Strategic Petroleum Reserve on demand, noting that the Biden administration was already buying oil to boost the strategic reserve. In Texas, the storm’s impact on oil and gas operations remained limited, with minor disruptions to gas and electricity flows, while gasoline supplies remained plentiful despite several roads and highways being closed due to the weather.
