Brent crude oil futures remained above $80 a barrel on Tuesday after the US President, Donald Trump, announced his decision to increase crude oil production in the US on Monday.

At 9.58 am on Tuesday, March Brent oil futures were at $80.08, down by 0.09 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $76.74, up by 0.46 per cent.

February crude oil futures were trading at ₹6650 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹6613, up by 0.56 per cent, and March futures were trading at ₹6590 against the previous close of ₹6560, up by 0.46 per cent.

In a White House briefing on Monday, Trump said he will declare a national energy emergency and use all necessary resources to build more energy infrastructure. He also said climate change policies of the previous President Joe Biden will be ended. This will help increase production of more crude oil and gas in the US.

The crude oil production in the US averaged around 13 million barrels a day in 2024. Trump’s latest decisions will help boost the production even more.

Market reports noted that increase in crude oil production in the US would help offset some supply tightening from the extended production cuts by the Organization of Petroleum Exporting Countries (OPEC) and from sanctions by the US against Russian oil sector.

Trump also said that he is planning to impose 25 per cent tariffs on imports from Canada and Mexico from February 1. US is the major consumer of Canadian crude oil.

On Venezuelan oil, he said the US is likely to stop buying oil from that country. Market reports noted that US could impose tighter sanctions on Venezuela.

Trump did not impose any levies on China on Monday. China is one of the major consumers of crude oil in the global market. Market is awaiting the details on Trump administration’s sanctions on some of the major crude oil producing nations such as Russia and Iran.

January natural gas futures were trading at ₹331.30 on MCX during the initial hour of trading on Tuesday against the previous close of ₹332, down by 0.21 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), February cottonseed oilcake contracts were trading at ₹2756 in the initial hour of trading on Tuesday against the previous close of ₹2769, down by 0.47 per cent.

March jeera futures were trading at ₹22165 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹22290, down by 0.56 per cent.

Published on January 21, 2025