(Bloomberg) -- Oil held a decline as Donald Trump vowed to declare a national emergency to unleash domestic energy production and held off unveiling China-specific tariffs on day one of his presidency.
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West Texas Intermediate for March fell from Friday’s close toward $76 a barrel, while Brent settled near $80. Trump has instead ordered his administration to address unfair trade practices globally, according to a fact sheet seen by Bloomberg. He had also threatened tariffs on Canada and Mexico.
The newly inaugurated president said he plans to refill the US strategic oil reserve “right to the top” after it reached lows not seen since the 1980s, and undo Biden-era policies designed to fight climate change. He also signed an executive order to withdraw from the Paris Climate agreement.
Oil has started the year strongly after cold weather in the Northern Hemisphere led to higher heating demand and broad US sanctions on Russia’s oil industry upended global flows. Trump’s nominee for Treasury secretary said he would support dialing up measures on Moscow, which could mean more disruption. There’s also the prospect for sanctions on Iran and Venezuela.
“The lack of clarity on tariffs and no mention of sanctions on Russia, Iran or Venezuela in US President Trump’s inauguration speech adds to the risks that we see a near-term correction in crude,” said Robert Rennie, head of commodity and carbon research for Westpac Banking Corp. A further boost to American output could put more pressure on prices, he added.
The Yemen—based Houthis, meanwhile, said they will stop attacking US and UK ships in the Red Sea area in response to the Israel-Hamas ceasefire agreement. Their campaign has lasted over a year and upended global trade.
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