West Texas Intermediate (WTI), the U.S. crude benchmark, was trading around $76.15 on Tuesday (21/1). WTI prices attracted some sellers as traders awaited a series of executive orders from U.S. President Donald Trump after his inauguration.

Trump announced on Monday that he would immediately declare a national energy emergency, vowing to fill the strategic reserve and use the authority to quickly approve new oil, gas and power projects that typically take years to obtain permits.

The Trump administration will push for more oil and gas production and consumption in the United States, which could drag WTI prices lower. "The inflation crisis (in the U.S.) is caused by massive overspending and rising energy prices, and that is why today I am also declaring a national energy emergency. We are going to drill, baby, drill. America is going to be a manufacturing nation once again," Trump said.

WTI price gains may be limited amid easing tensions in the Middle East. On Sunday, Hamas and Israel exchanged hostages and prisoners, marking the beginning of a ceasefire after 15 months of conflict.

On the other hand, encouraging Chinese economic data could support the black gold, as China is the world's largest importer of crude oil. China's economy grew 5.4% year-on-year in the fourth quarter (Q4) of 2024, compared to a 4.6% expansion in Q3. This was stronger than the 5% expected by a wide margin. (AL)

Source: FXstreet