- Oil prices fell as traders awaited policy clarity from U.S. President-elect Donald Trump.
- Brent crude dropped by 1.05% to $79.94, and WTI crude declined by 1.07% to $77.05.
- Market uncertainty stems from potential policy shifts, including lifting LNG export moratoriums and addressing the Russia-Ukraine war.
- Recent sanctions on Russian oil and tankers tightened supply but could see adjustments under the new administration.
- A ceasefire between Israel and Hamas contributed to stabilizing prices.
Oil prices experienced a decline on Monday as market participants awaited the inauguration of U.S. President-elect Donald Trump, seeking clarity on his policy agenda. The uncertainty surrounding potential executive actions, particularly in addressing the Russia-Ukraine conflict and LNG export policies, influenced market sentiment, according to reuters.
Impact of Recent Sanctions
Sanctions imposed by the Biden administration on Russian oil producers and tankers had previously supported prices by tightening supply. However, analysts suggest that these gains could be temporary, depending on Trump’s decisions regarding sanctions and energy exports.
Speculation on Policy Moves
Trump is expected to announce significant policy measures, including lifting a moratorium on U.S. liquefied natural gas export licenses to boost economic growth. Market participants are also focused on whether Trump might ease sanctions on Russia as part of efforts to negotiate an end to the Russia-Ukraine conflict.
Middle East Ceasefire and Its Influence
Stability in the Middle East also contributed to easing oil prices. A ceasefire between Israel and Hamas, marked by an exchange of hostages and prisoners, has helped temper market volatility linked to geopolitical tensions.
Outlook and Uncertainty
While recent sanctions have reduced Russian oil supply, the market remains cautious. The uncertainty surrounding the new administration’s approach to energy policy and geopolitical challenges underscores the potential for continued price fluctuations.
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Source: Reuters
