Oil Prices Settle Lower as Trump Takes Office
Oil prices settled lower on Monday after U.S. President Donald Trump was sworn in for a second term, promising to declare a national energy emergency and fill up strategic reserves. The U.S. West Texas Intermediate crude futures closed down by $1.30, or 1.7%, at $76.58, while the more active WTI crude March contract was down 91 cents, or 1.2%, at $76.48.
Trump has signaled that he will use his authority to rapidly approve new oil, gas, and electricity projects, which typically take years to permit. He also plans to sign an executive order focused on Alaska, which is critical to U.S. national security and could allow shipments of liquefied natural gas to other parts of the United States and to allied countries.
The focus is on what executive orders Trump will sign over the next 24 hours, with analysts expecting policy announcements that include an end to a moratorium on LNG export licenses as part of a wider strategy to strengthen the economy.
The Brent and WTI benchmarks advanced more than 1% last week for a fourth-consecutive weekly gain after the Biden administration imposed sanctions on more than 100 tankers and two Russian oil producers. However, recent price gains could be short-lived depending on Trump’s actions, with analysts noting that the new sanctions could cut supply from Russia by nearly 1 million barrels per day.
Easing tension in the Middle East also kept a lid on oil prices, with Hamas and Israel exchanging hostages and prisoners on Sunday marking the first day of a ceasefire after 15 months of war.