Trump’s Energy Policies Shake Global Markets
(New York, 22nd) The global oil market took a hit on Tuesday as U.S. President Donald Trump ’s latest policy announcements caused a sharp drop in crude prices, while gold prices soared.
Oil Prices Plummet Amid U.S. Production Surge Fears
Market analysts attribute the oil price decline to concerns that Trump’s aggressive push to boost U.S. oil production could lead to an oversupply. On Tuesday, February crude futures in New York closed down $1.99, or 2.55%, settling at $75.89 per barrel. Meanwhile, March futures, which will soon become the spot contract, declined 2% to $75.83 per barrel. Brent crude in London also retreated, closing 86 cents lower, or 1.07%, at $79.29 per barrel.
Trump Declares National Energy Emergency, Adding to Market Volatility
Trump’s declaration of a national energy emergency on Monday further rattled the markets. Due to a holiday closure on Monday, Tuesday’s crude price movement reflected the full impact of his announcement.
Mizuho analyst Robert Yawger commented that Trump’s energy strategy signals continued production increases from both the U.S. and the OPEC+ alliance, raising fears of a global supply glut that could push prices even lower. Meanwhile, the U.S. Energy Information Administration (EIA) reaffirmed its forecast that oil prices will decline this year and next due to rising production and supply.
Trump Make Gold Prices Surge as Trade War Concerns Resurface
At the same time, Trump’s renewed threats to impose tariffs on Canada and Mexico sparked a surge in safe-haven demand for gold. New York gold futures climbed $10.50, or 0.4%, closing at $2,759.20 per ounce. Spot gold briefly surged 1.39% to an intraday high of $2,745.97—its highest since early November—before settling up 1.35% at $2,744.81.
Investors Turn to Gold as Safe Haven Amid Economic Uncertainty
Traders believe that Trump’s tariff threats reflect escalating trade tensions, prompting investors to seek refuge in gold. Josh Mahony, an analyst at Scope Markets, noted that Trump’s commitment to increasing U.S. crude output could lead to lower inflation and potential Federal Reserve rate cuts, further benefiting gold.
Meanwhile, David Morrison of Trade Nation added that gold faces key technical resistance near $2,785, suggesting that a breakout might not be easy.
