West Texas Intermediate (WTI) crude oil is trading around $76.15 on Tuesday, facing some selling pressure as traders await a series of executive orders from US President Donald Trump following his inauguration.
On Monday, Trump announced plans to declare a national energy emergency, pledging to fill up the strategic petroleum reserves and expedite approvals for oil, gas, and electricity projects that would typically take years to permit. The administration is set to promote increased oil and gas production in the United States, which may weigh on WTI prices. “The inflation crisis was caused by massive overspending and escalating energy prices, and that is why today I will also declare a national energy emergency. We will drill, baby, drill. America will be a manufacturing nation once again,” Trump stated.
Additionally, the upside for WTI prices may be capped by the easing of tensions in the Middle East. On Sunday, Hamas and Israel exchanged hostages and prisoners, marking the beginning of a truce after 15 months of conflict.
On a more positive note for oil prices, encouraging economic data from China could provide some support. China’s economy grew by 5.4% year-over-year in the fourth quarter of 2024, surpassing the expected 5% and outpacing the 4.6% growth recorded in Q3. As the world’s largest crude importer, stronger Chinese economic performance could bolster demand for oil.
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