Trump's policies, including the rollback of environmental regulations and proposed tariffs, bolster oil supply while exerting downward pressure on prices, as cold weather forecasts and production declines in North Dakota help mitigate further price declines.
The international benchmark Brent crude fell by 0.6%, trading at $78.28 per barrel at 10.53 a.m. local time (0753 GMT), up from $78.80 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) decreased by 0.8%, reaching $75.34 per barrel, compared to its prior session close of $75.94.
Oil prices remain stable following US President Donald Trump's declaration of a national emergency to increase energy production.
Trump's policies to boost US oil and gas production, in line with his campaign promises, have reinforced the perception that there will be no significant supply disruptions in global markets, thereby contributing to the downward pressure on oil prices.
Trump's decision to revoke the executive order issued by former President Joe Biden, which banned oil and natural gas drilling in most US federal waters, is seen as a signal that Biden’s environmental regulations are being rolled back. This reversal has eased supply concerns among market participants, contributing further price falls.
Furthermore, the Trump administration's consideration of imposing a 25% tariff on oil imports from Canada and Mexico, along with the February 1 deadline for a 10% tariff on imports from China, is also supporting downward price movements.
The anticipation that these trade measures could drive up domestic oil prices in the US, the world's largest oil consumer, is intensifying fears of a potential decline in oil demand, adding further downward pressure on prices.
On the other hand, forecasts of rising heating fuel demand due to cold weather in both Europe and the US are providing support to prices, preventing them from falling further. Reports of severe winter conditions in the US are causing daily oil production in North Dakota to drop by between 130,000 and 160,000 barrels, fueling supply concerns and exerting upward pressure on prices.
By Hasan Huseyin Ozdemir
Anadolu Agency
energy@aa.com.tr