Oil markets dipped on Tuesday for the second consecutive day following President Trump's inauguration, with analysts attributing the decline to uncertainty surrounding his new policies. Brent crude fell 0.85% to $79.49 per barrel, while WTI crude declined 1.5% to $76.68 per barrel. Some investors are taking profits ahead of clarity on the Trump administration's approach to energy.
Oil markets have kicked off the new week on the back foot, falling for the second consecutive day after President Trump was sworn in for a second term on Monday. Brent crude for March delivery was down 0.85% to trade at $79.49 per barrel at 1140 am ET while WTI crude for February delivery declined 1.5% to $76.68 per barrel. According to PVM oil analyst Tamas Varga, the price declines can be chalked up to the huge uncertainty over the incoming president's new policies.
However, commodity experts at Standard Chartered have predicted that the strength in oil markets witnessed at the start of the new year is likely to persist, powered by, among other things, the removal of more Russian barrels from the market following sanctions. According to StanChart, the new restrictions roughly triple the number of directly sanctioned Russian crude oil tankers, enough to affect around 900,000 barrels per day bpd.
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