The prices of oil rose this Wednesday as the dollar weakened, and traders closely followed US inventories, the president’s proposed tariffs donald trump and the potential impact of the national energy emergency he declared on his first day in office.
During the morning, crude oil futures Brent rose 43 cents, or 0.54%, to $79.72 a barrel, while crude oil futures West Texas Intermediate United States rose 45 cents, or 0.59%, to $76.28.
He oil is receiving support from a marginally weaker US dollar as well as positive risk sentiment with equity markets rising, UBS analyst Giovanni Staunovo told Reuters.
He dollar struggled to regain ground against major currencies and remained near its two-week lows. A weaker dollar typically supports oil prices.
“It is likely that some expectations of a fall in crude oil inventories in USA This week they are also boosting prices a little. “Market moves are small as market participants still await more clarity on Trump’s next steps on tariffs and sanctions policies,” Staunovo said.
Tariff policies
Trump said Tuesday night that his administration was discussing the possibility of imposing a 10% tariff on goods imported from China on February 1, the same day he previously said that Mexico and Canada They could face levies of around 25%. He also promised tariffs on European imports, without providing further details.
“The oil market’s attention is slowly shifting away from US sanctions against Russia and is focusing on President Trump’s potential trade policy,” ING analysts said, adding that the energy complex has come under pressure with the growing threat of tariffs.
The US president had said his administration would “probably” stop buying oil from Venezuela, one of the country’s main oil suppliers.
Trump presented a broad plan to maximize domestic production of oil and gas, including declaring a national energy emergency to expedite permits, roll back environmental protections, and recall USA of the Paris climate pact.
Trump’s policy is unlikely to spur near-term energy investment or change U.S. production growth, analysts at Morgan Stanley in a note, adding that it could, however, moderate the possible erosion of demand for refined products. Meanwhile, a rare winter storm hit the coast of the United States Gulf on Tuesday.
On the other hand, it is estimated that the oil production of North Dakota decreased by between 130,000 and 160,000 barrels per day (bpd) due to extremely cold weather and related operational challenges, the state’s pipeline authority said on Tuesday.
Source: Ambito
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