Trump’s presidency is expected to provide a boon for hydrocarbons business.
But Brendan Long, analyst at stockbroker WH Ireland, says that broader political and economic uncertainties are weighing on oil prices.
Brent crude was steady at US$46 per barrel, while West Texas Intermediary was down 0.3% changing hands at US$44.85.
“We believe that President Trump will be against regulation in principle and unsympathetic with climate change policies, which is favourable for coal, oil and gas (both for US supply and demand).
Lond added: “We anticipate that President Trump will support policies that favour shale oil and gas, but in tangible terms we see little change as shale plays have been supported by US policy for over a decade and their success relates to principally to economics and technology.
“On the demand side, we see more freedom being provided to consumers which will materially increase demand for oil…keep an eye on the Ford F150 – America’s best-selling vehicle for decades and recently built in soft aluminium to meet efficiency standards, expect it to be more powerful and tougher in a couple years.”