Trump’s ‘drill baby, drill’ push rattles oil markets, but economics may limit impact

ENERGY markets are under pressure, with oil prices trending lower as traders continue to react to new US President Donald Trump’s pledge to ramp up US oil production, though market watchers say Opec+ production and global economic conditions remain the primary drivers of short-term price movements.

Since Trump’s inauguration on Monday, Brent, the global benchmark, has lost some 1.5 per cent to US$78.76 per barrel as at Thursday’s (Jan 23) morning session in Asia while West Texas Intermediate (WTI) was down nearly 2 per cent to US$75.22 per barrel. 

The futures market also experienced a sell-off, which Ryan Fitzmaurice, senior commodity strategist at Marex, described as a negative knee-jerk reaction to Trump’s proposed tariff plans on oil imports.