The American president declared a “state of energy emergency”, which aims to boost the production of hydrocarbons in the United States to reduce the cost of energy.
Published on 21/01/2025 23:35
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The black gold market cooled by Trumpist speeches. Oil prices ended down on Tuesday January 21, after Donald Trump declared the day before a “state of energy emergency”. Its objective is to boost hydrocarbon production in the United States to reduce the cost of energy and fight inflation.
The price of a barrel of Brent from the North Sea, for delivery in March, lost 1.07% to $79.29. Its American equivalent, a barrel of West Texas Intermediate, for delivery in February, fell by 2.56% to $75.89.
-Donald Trump intends to increase oil and gas production, to “fill strategic reserves” et “export American energy around the world”DNB analysts learned from his speech. “We are going to drill at all costs”repeated the Republican – a formula that has become one of his campaign slogans (“We will drill, baby, drill”).
“This is one of the reasons why prices are bearish today”commented to AFP Robert Yawger, analyst at Mizuho USA. Donald Trump tries “to increase public pressure on the industry to add barrels to what is already the most production we have ever had”he summarized. American production has already reached a record level in 2024 and exceeds 13 million barrels per day almost every month.
The drop in prices could, however, be contained by the outlook for “sanctions against Russia and Iran”argued, in a note, Volkmar Baur, analyst at Commerzbank. According to the analyst, operators are waiting in particular to see “Trump's view of the sanctions against Russia recently introduced by the administration [Joe] Biden”. Oil prices notably jumped on January 10, driven by the announcement of new sanctions from Washington and London against major players in the Russian oil sector.
