Crude oil prices were little changed on Friday (1/24) but headed for a weekly decline after U.S. President Donald Trump unveiled a sweeping plan to increase U.S. production and demanded that OPEC lower crude prices.

Brent crude futures were up 6 cents at $78.35 a barrel by 0745 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 4 cents at $74.66.

For the week, Brent is down 3.07% so far, and WTI is down 4.17%.

"Crude oil prices have eased so far this week, as investors trimmed their war premiums after the Gaza ceasefire while bracing for a shift in Trump's energy policy," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

"For now, Trump is not as predictable as expected, which makes oil prices prone to volatility on headlines," Sachdeva added.

Trump, in a speech Thursday at the World Economic Forum in Davos, Switzerland, said he would demand the Organization of the Petroleum Exporting Countries and its de facto leader, Saudi Arabia, lower the cost of crude.

He also said he would ask Riyadh to increase the U.S. investment package to $1 trillion, up from the $600 billion reported by the Saudi state news agency earlier in the day.

Trump declared a national energy emergency on Monday, lifting environmental restrictions on energy infrastructure as part of a sweeping plan to maximize domestic oil and gas production.

On Wednesday, he vowed to hit the European Union with tariffs and imposed 25% duties on Canada and Mexico, and said his administration was considering punitive duties of 10% on China.

As attention turns to the likely February timetable for new tariffs imposed by Trump, caution is likely to remain in the market because any new trade restrictions would have negative implications for global growth, potentially weighing on the oil demand outlook, said Yeap Jun Rong, a market strategist at IG. Traders expect oil prices to range between $76.50 and $78 a barrel, Yeap added.

While positive catalysts such as a significant drawdown in U.S. crude stockpiles provided a temporary positive turnaround, an overall oversupplied global market and a growing Chinese demand outlook continue to weigh on crude futures, Phillip Nova's Sachdeva said.

U.S. crude inventories last week hit their lowest since March 2022, according to the U.S. Energy Information Administration.

Source: Investing.com