Breaking News: Oil Prices Decline in Asian Trade Amidst Trump’s Policies and U.S. Inventory Data
Oil prices experienced a slight drop in Asian trade on Thursday, as traders anticipated higher U.S. production under President Donald Trump and awaited further data on U.S. inventories. The recent uncertainty surrounding Trump’s energy and trade policies, as well as the ceasefire between Israel and Hamas, have contributed to the decline in crude prices.
However, the overall losses in oil were tempered by expectations of increased heating demand due to cold weather in the U.S. and Europe, as well as recent U.S. sanctions against Russia. Brent crude fell by 0.3% to $78.80 a barrel, while WTI crude dropped by 0.2% to $75.27 a barrel by 20:21 ET (01:21 GMT).
U.S. Inventories Expected to Increase after 5 Weeks of Draws – API
Data from the American Petroleum Institute (API) revealed that U.S. inventories grew by 1 million barrels in the week ending January 17, following five consecutive weeks of draws. This data typically sets the tone for the Energy Information Administration (EIA) report, which is scheduled for release later on Thursday.
Analysts predict that while oil inventories may have decreased last week, product inventories likely saw an increase. The cold weather in the U.S. has driven up demand for heating, while disrupting crude production in the Gulf of Mexico and causing travel disruptions across the country.
Trump’s Energy and Trade Policies in the Spotlight
President Trump’s energy and trade policies have been a major factor influencing oil prices this week. Trump recently declared a national energy emergency and pledged to significantly boost energy production in the upcoming months. His push for higher oil production, coupled with the rollback of certain climate-related regulations, aims to lower energy prices and curb inflation.
The surge in U.S. production, which hit record highs of 13 million barrels per day in 2024, is expected to offset lower output from other regions, including OPEC countries. Trump’s trade policies, particularly the threat of tariffs on major economies like China, Canada, and Mexico, have also raised concerns. Additional economic pressure on China, the world’s largest oil importer, could further dampen its demand for crude.
Analysis:
Oil prices have declined due to factors such as Trump’s policies and U.S. inventory data. The uncertainty surrounding Trump’s energy and trade policies, as well as the ceasefire in the Middle East, have contributed to this decline. Despite the drop, expectations of increased heating demand and recent U.S. sanctions against Russia have limited the overall losses in oil prices. Additionally, U.S. inventories are expected to increase after five weeks of draws, which could impact the market. Trump’s focus on boosting energy production and his trade policies, including threats of tariffs on major economies, are also key factors influencing oil prices. It is essential for investors to monitor these developments closely to make informed decisions about their finances.