Oil prices hold steady with focus on U.S. tariffs and energy plans

Oil prices remained steady on Wednesday, with traders focused on President Donald Trump's proposed tariffs and the potential effects of the national energy emergency he declared on his first day in office.

At 1246 GMT, Brent crude futures increased by 4 cents, or 0.05%, to $79.33 per barrel, while U.S. West Texas Intermediate crude futures dropped 2 cents, or 0.03%, to $75.81.

Trump announced late Tuesday that his administration is considering a 10% tariff on goods imported from China, effective February 1. He also mentioned that Mexico and Canada could face tariffs around 25%. Additionally, he pledged duties on European imports, though no further details were provided.

The president suggested that his administration would likely stop purchasing oil from Venezuela, one of the top suppliers to the U.S. He also outlined plans to boost domestic oil and gas production by declaring a national energy emergency to speed up permitting, rolling back environmental protections, and withdrawing from the Paris climate agreement.

Analysts at Morgan Stanley noted that while Trump's policy is unlikely to result in immediate energy investment or changes to U.S. production growth, it could help reduce potential declines in refined product demand.

Meanwhile, a rare winter storm affected the U.S. Gulf Coast on Tuesday, and North Dakota’s oil production was estimated to have fallen by 130,000 to 160,000 barrels per day due to extreme cold and operational challenges, according to the state's pipeline authority.