Oil declines on fears of increase in US supplies

Oil drilling rigs

Oil prices eased today, Jan. 22, as investors weighed the outlook for US supplies after President Donald Trump declared an energy emergency to boost his country's crude and natural gas output.

International benchmark Brent crude was trading down 0.29% at $79.06 a barrel, at 09:16 am Makkah time. West Texas Intermediate (WTI) crude fell 0.41% to $75.52 a barrel.

Market players are trying to digest the mixed signals that Trump's return to the White House carries, IG Markets strategist Yeap Jun Rong told Reuters.

He explained that investors' focus in the short term will be on whether Trump's goals of replenishing strategic reserves will be achieved.

On another note, a rare winter storm hit the US Gulf Coast yesterday, putting most parts of the country at risk of significantly lower temperatures.

North Dakota's oil pipeline authority estimates that the state's crude production has fallen by between 130,000 and 160,000 barrels per day due to extreme weather conditions.