Oil prices showed signs of stabilization on Monday, as the market navigated expectations of significant policy changes from the newly inaugurated US President Donald Trump. The price of West Texas Intermediate (WTI) crude for March delivery slipped toward $76 per barrel, following a decline from Friday’s close, while Brent crude hovered near $80 per barrel.
Trump’s initial moves after taking office have focused on trade policy, with the president holding off on implementing specific tariffs on China as previously anticipated. Instead, Trump has directed his administration to address global trade imbalances, particularly concerning unfair practices, according to a fact sheet seen by Bloomberg. This shift in focus comes after earlier threats of tariffs on both Canada and Mexico.
In a bold energy-related move, Trump announced plans to declare a national energy emergency, aimed at boosting domestic oil production and rolling back policies put in place under the Biden administration to combat climate change. As part of this initiative, the president revealed his intent to replenish the US Strategic Petroleum Reserve, which currently sits at its lowest levels since the 1980s.
The oil market had already started 2025 on a strong note, driven by cold weather in the Northern Hemisphere that spurred higher demand for heating, coupled with sweeping US sanctions targeting Russia’s oil sector. These sanctions have disrupted global oil flows and created further uncertainties for international markets. Trump’s Treasury secretary nominee also indicated last week that more stringent measures against Moscow could be on the horizon, suggesting additional disruptions to global oil supplies.
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