By Arathi Somazekhar and Jeslyn Leary
SINGAPORE (Reuters) – Oil prices were little changed on Wednesday as markets weighed U.S. President Donald Trump’s declaration of a national energy emergency on his first day in office and its impact on supplies.
Futures were up 9 cents at $79.38 a barrel by 0420 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 1 cent at $75.84.
Contracts fell on Tuesday after Trump laid out a sweeping plan to maximize oil and gas production, including declaring a national energy emergency to speed up permits, roll back environmental protections and pull the US out of the Paris climate pact.
“Market participants are trying to digest the mixed signals that Trump 2.0 brings to the trajectory of oil prices,” said Yip Jun Rong, market strategist at IG.
“In the near term, the focus will be on whether his goal of replenishing US strategic reserves will be met,” Yep said, adding that the focus is on his future tariff policy.
Trump’s latest energy policies are unlikely to boost near-term investment or reverse U.S. manufacturing growth, analysts say Morgan Stanley (NYSE: ) wrote in a note, adding that this could mitigate potential erosion in refined product demand.
Analysts also questioned whether Trump’s pledge to replenish the strategic reserve would make any difference to oil demand, as the Biden administration was already buying oil for emergency supplies.
Investors were also cautious as Trump’s trade policy remained unclear. He said he was considering imposing a 25% tariff on imports from Canada and Mexico starting Feb. 1, rather than his first day in office as he previously promised.
The US president also added that his administration would “probably” stop buying oil from Venezuela, the country’s main oil supplier.
Meanwhile, a rare winter storm hit the US Gulf Coast on Tuesday, leaving much of the United States in a dangerously deep freeze.
North Dakota’s oil production is down 130,000 to 160,000 barrels per day (bpd) due to extreme cold weather and related operational challenges, the state’s pipeline authority said Tuesday.
The storm’s impact on oil and gas operations in Texas was limited, with minimal gas flow disruptions, minor power outages and plenty of gasoline at the pump as many roads and highways remained closed.