Oil prices remain stable as markets evaluate Trump’s policies

(MENAFN) Oil prices showed little movement in early Wednesday trading as markets evaluated U.S. President Donald Trump's declaration of a national energy emergency on his first day in office and its potential impact on supply. Brent crude futures slipped by 3 cents to USD79.26 per barrel, while U.S. West Texas Intermediate (WTI) crude futures for March delivery fell by 9 cents to USD75.74 as of 0120 GMT.

On Monday, Trump announced an extensive plan to increase oil and gas production. This included declaring a national energy emergency to expedite permits, rolling back environmental protections, and withdrawing the U.S. from the Paris climate agreement. The measures are intended to boost domestic energy output.

However, analysts at Morgan Stanley noted in a report that these policies are unlikely to drive immediate investment or significantly alter U.S. production growth in the short term. They suggested the measures could help offset potential reductions in demand for refined products but questioned their broader impact on the industry.

There was also skepticism about Trump's promise to replenish the strategic petroleum reserve, as the previous administration under Joe Biden had already begun purchasing oil for emergency stockpiles. Meanwhile, investors remained cautious due to the lack of clarity on Trump’s trade policies, including his consideration of 25 percent tariffs on imports from Canada and Mexico starting February 1, rather than implementing them on his first day as previously stated.

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