Oil Edges Lower Ahead of Trump's Inauguration
Oil prices declined ahead of the inauguration of President-elect Donald Trump, as the market anticipates uncertainty and volatility during his second term.
Key Points:
* Brent crude trades near $80 a barrel, having fallen in recent sessions.
* Trump plans to invoke emergency powers to boost domestic energy production.
* Tariffs on China, Canada, and Mexico are a potential threat.
* Sanctions on Iran are a key focus for oil traders.
* Geopolitical tensions, including those with Russia and Venezuela, are also monitored.
* US sanctions on Russia have disrupted tanker markets and increased oil prices.
* Trump's nominees for Treasury Secretary and National Security Advisor have expressed support for increased pressure on Russia and Iran.
Market Outlook:
Trading volumes may be lower due to the US federal holiday. Speculators are increasing net wagers on rising oil prices, despite some buildup of short positions. The market remains cautious as it awaits clarity on Trump's energy and foreign policy measures.