Oil prices declined in Asian trading on Tuesday following President Donald Trump's pledge to expand United States oil and gas production while postponing the imposition of new tariffs on Canadian and Mexican imports.
By 2:25 pm AEDT (3:25 am GMT) Brent crude futures were steady at US$80.18 per barrel, while the most actively traded March West Texas Intermediate (WTI) crude contract fell $0.52 or 0.7% to $76.87 per barrel from Friday’s close.
Markets in the U.S. were closed on 20 January due to a public holiday.
President Trump declared a national energy emergency during his first day in office, outlining a comprehensive plan aimed at accelerating oil, gas, and power permitting to bolster U.S. energy production, already at record levels. He also suggested 25% tariffs on imports from Canada and Mexico from February 1st, a decision that contributed to the dip in oil prices.
Trump indicated the U.S. might cease purchasing oil from Venezuela, where the U.S. is the second-largest buyer after China.
In a separate announcement, Trump vowed to replenish the U.S. strategic oil reserves, a decision that could boost demand for U.S. crude and potentially support prices in the long term.