By Arunima Kumar
(Reuters) – Oil prices held steady on Wednesday, with traders closely watching President Donald Trump’s proposed tariffs and the potential impact of the national energy emergency he declared on his first day in office.
futures were 18 cents, or 0.2%, lower at $79.11 per barrel at 1415 GMT. U.S. West Texas Intermediate crude futures edged down 18 cents, or 0.2%, to $75.65.
“As more details emerge regarding energy production and trade agreements, traders will assess the balance between economic growth, energy security, and policy risks,” said Dilin Wu, research strategist at Pepperstone.
Trump said late on Tuesday that his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada could face levies of around 25%.
He also vowed duties on European imports, without providing further detail.
“The oil market’s attention is slowly turning away from U.S. sanctions against Russia towards President Trump’s potential trade policy,” said ING analysts, adding that the energy complex has come under pressure with the growing threat of tariffs.
The U.S. president had said his administration would “probably” stop buying oil from Venezuela, among the top suppliers to the country.
Trump has laid out a sweeping plan to maximise domestic oil and gas production, including declaring a national energy emergency to speed up permitting, rolling back environmental protections, and withdrawing the U.S. from the Paris climate pact.
His policy is unlikely to spur near-term energy investment or change U.S. production growth, analysts at Morgan Stanley (NYSE:) wrote in a note, adding that it could, however, moderate potential erosion of refined product demand.
A rare winter storm churned across the U.S. Gulf Coast on Tuesday. Texas-based oil refiner Motiva reported an unexpected interruption at its Port Arthur complex because of weather conditions.
North Dakota’s oil production was estimated to be down by between 130,000 and 160,000 barrels per day due to extreme cold weather and related operational issues, the state’s pipeline authority said on Tuesday.