Crude oil prices experienced a noticeable decline during trading on Tuesday, shedding their highest levels since August. This drop came after the inauguration speech by U.S. President Donald Trump, in which he confirmed his intention to make energy prices cheaper, raising concerns in the markets about the potential increase in U.S. oil supplies in the future.
Performance of Oil Prices in Global Markets In global oil markets, U.S. crude oil contracts fell by 1.03%, reaching a price of $75.55 per barrel, while Brent crude contracts dropped by 1.05% to record $78.93 per barrel. This decline reflects the prevailing market concerns about the possibility of increased U.S. oil supplies under the current economic conditions, which could affect price stability.
Reasons for the Decline in Oil Prices: Trump's Statements and Their Impact on the Market Oil prices were notably impacted on Tuesday by President Donald Trump's statements during the inauguration speech, where he referred to a national emergency in the energy sector. Trump stated that the United States would take advantage of domestic oil reserves, rebuild strategic reserves, and intensify oil and gas exploration, which could increase oil supply in the markets.
Trump also added that the United States would seek to expand American energy exports to countries around the world, raising fears of increased global supplies at a time when global economic growth is weakening. As a result, markets are worried about a decline in prices due to this increase in supply, which could lead to an oil surplus.
Geopolitical Developments and Their Impact on Oil Markets News regarding the easing of sanctions on the Russian energy sector has further pressured oil prices, as this move enhances the likelihood of increased Russian oil supplies to global markets. This development could reshape the global oil landscape and affect price trends in the future.
Performance of Other Energy Contracts Regarding other energy contracts, heating oil contracts saw a slight increase of 0.47%, reaching a price of $2.5495 per gallon, while gasoline contracts decreased by 3.02%, recording $2.0793 per gallon. Additionally, natural gas contracts fell by 2.28%, bringing the price to $3.858 per million British thermal units.
