Oil futures: Crude steadies as markets eye US policy, Texas freeze-off
Quantum Commodity Intelligence - Crude oil futures Wednesday were marginally lower as benchmarks steadied after several days of declines.
Front-month Mar25 ICE Brent futures were trading at $79.11/b (1635 GMT) versus Tuesday's settle of $79.29/b, coming after a run of four consecutive declines.
At the same time Mar25 NYMEX WTI was trading at 75.62/b, versus Tuesday's close of $75.83/b.
Analysts said that markets found some support after investors reviewed current fundamentals in the wake of the recent selloff, which coincided with President Trump's inauguration.
While Trump has announced plans to overhaul US energy policy, the broader pledges, including more drilling and filling the SPR, along with the sanctions policy, will take time to review and implement.
"On his first day, Trump withdrew the US from the Paris Agreement and reversed Biden's ban on offshore oil and gas drilling in part of the US continental shelf to push for more oil and gas output," said City Index analyst Fiona Cincotta in a research note, adding the presidential change set the mood for lower prices.
More pressing is the issue of tariffs, which could be applied to Canada from 1 February. The 25% surcharge will affect some 4 million bpd of crude exported to the US.
On the issue of sanctions, any immediate reversal on Russia is seen as unlikely, while Iran policy could also be parked until later in the year.
More immediately, the US may move to ban Venezuelan imports, which would tighten the availability of sour crude for refiners along the US Gulf Coast.
Freeze
Oil traders were also watching for impacts from the latest US freeze as the Arctic conditions move further south, including into Texas.
Around 150,000 bpd of crude has already been knocked out in North Dakota, which borders Canada, but the freeze-off in the US is working its way south.
Oil and gas infrastructure in southern states is more sensitive to freezing conditions, leaving production, pipelines, ports, refineries, and distribution networks vulnerable to the frigid conditions.
