Oil Prices Decline as Trump Prioritises Domestic Energy Production

Oil prices continued to decline as the newly inaugurated U.S. President Donald Trump vowed to declare a national emergency to boost domestic energy production. Trump refrained from unveiling China-specific tariffs on his first day in office, instead directing his administration to address unfair global trade practices, according to a fact sheet seen by Bloomberg.

WTI and Brent Crude Prices Dip

West Texas Intermediate (WTI) crude for March delivery dropped toward $76 a barrel, falling from Friday’s close, while Brent crude settled near $80. The market responded to Trump’s focus on domestic energy and global trade policies.

Strategic Oil Reserve Refill Planned

Trump announced plans to refill the U.S. Strategic Petroleum Reserve “right to the top” after it reached lows not seen since the 1980s. The president also signed an executive order to withdraw the U.S. from the Paris Climate Agreement and pledged to roll back Biden-era climate policies.

Sanctions on Russia, Iran, and Venezuela Loom

Oil markets remain tense amid potential disruptions from U.S. sanctions. Trump’s Treasury Secretary nominee expressed support for tightening sanctions on Russia, which could exacerbate the impact on global oil flows. There’s also the prospect of heightened sanctions on Iran and Venezuela, adding further uncertainty to the energy sector.

Oil started 2025 strongly, with colder-than-usual weather in the Northern Hemisphere increasing heating demand. Additionally, U.S. sanctions on Russia’s oil industry disrupted global supply chains, intensifying market volatility.

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