RoydadNaft –  Citing Reuters, oil prices saw minimal movement in Wednesday’s trading as markets monitored former President Donald Trump’s announcement regarding a domestic energy emergency on his first day back in office and its potential impact on oil supply.

Trump unveiled a plan on Monday aimed at maximizing oil and gas production, which includes declaring a domestic energy emergency to expedite permitting, ease environmental regulations, and withdraw the United States from the Paris Climate Agreement.

However, analysts at investment bank Morgan Stanley believe this policy will neither significantly boost investment nor alter the trajectory of U.S. production growth in the short term.

They also questioned whether Trump’s promise to refill the Strategic Petroleum Reserve (SPR) would influence oil demand. The Biden administration had previously initiated purchases to replenish the SPR.

Investors remain cautious due to uncertainty surrounding Trump’s trade policies. He hinted at imposing a 25% tariff on imports from Canada and Mexico starting in February, a move he initially pledged to enact on his first day in office.

Trump also mentioned that his administration might halt oil purchases from Venezuela, one of the largest suppliers to the U.S.

Meanwhile, a rare winter storm has swept across the U.S. Gulf Coast since Tuesday, plunging much of the country into dangerously cold temperatures. Oil production in North Dakota has been reduced by 130,000 to 160,000 barrels per day due to extreme cold and related operational challenges.