Written by Arathi Somasekhar
(Reuters) – There was little change in oil prices in early trading on Wednesday, as markets studied US President Donald Trump’s declaration of a national energy emergency on his first day in office and its impact on supplies.
Futures fell three cents to $79.26 a barrel, while US West Texas Intermediate crude futures for March delivery fell nine cents to $75.74 by 0120 GMT.
Trump on Monday laid out a sweeping plan to maximize oil and gas production, including declaring a national energy emergency to speed up the permitting process, rescinding environmental protections, and withdrawing the United States from the Paris climate agreement.
However, this policy is unlikely to stimulate investment in the near term or change US production growth, analysts say Morgan Stanley (NYSE:) wrote in a note, adding that it may, however, mitigate the potential erosion of demand for refined products.
Analysts also wondered whether Trump's promise to refill the Strategic Reserve would bring any changes to oil demand as the Biden administration was already purchasing oil for emergency stockpiles.
Investors also remained cautious as Trump's trade policy remained unclear. He said he is considering imposing 25% tariffs on imports from Canada and Mexico starting Feb. 1, not on his first day in office as he previously promised.
The US President also added that his administration will “most likely” stop purchasing oil from Venezuela, which is among the country's major oil suppliers.
Meanwhile, a rare winter storm hit the US Gulf Coast on Tuesday, and much of the US remained in a dangerous deep freeze.
Oil production in North Dakota is estimated to decline by 130,000 to 160,000 barrels per day due to extreme cold weather and related operational challenges, the state Pipeline Authority said Tuesday.
The storm's impact on oil and gas operations remained limited in Texas, with minimal disruption to gas flows, few power outages and ample gasoline stocks at the pump, as many roads and highways remained closed.
