Oil prices remained steady in Asian trading on Wednesday as markets assessed the implications of United States President Donald Trump’s declaration of a national energy emergency.
By 2:45 pm AEDT (3:45 am GMT) Brent crude futures traded flat at US$79.30 per barrel, while U.S. West Texas Intermediate (WTI) crude for March delivery eased $0.07 or 0.1% to $75.76 per barrel.
On his first day in office, President Trump outlined an ambitious plan to boost oil and gas production. The measures include declaring a national energy emergency to expedite permitting, rolling back environmental regulations, and withdrawing the United States from the Paris Climate Agreement.
Uncertainty surrounding Trump’s trade policies added to market caution. The president signalled he might impose 25% tariffs on imports from Canada and Mexico starting February 1, a delay from his earlier pledge to act on his first day in office.
Additionally, Trump stated his administration would "probably" halt oil imports from Venezuela, one of the country’s key suppliers.
Elsewhere, a severe winter storm swept through the U.S. Gulf Coast on Tuesday, contributing to production disruptions.
ANZ analysts wrote in a note to clients: “The frigid weather is expected to crimp oil production due to freezing water in wells and pipes.”
North Dakota’s oil output was estimated to have declined by 125,000 to 250,000 barrels per day due to extreme cold and operational challenges, according to the state’s pipeline authority.
