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Oil Prices Start The Week Lower Amid Uncertainty Over Trump’s Policies

Oil prices have opened the week on a downward note, as the market shifts focus to the incoming US President, Donald Trump. One of his first anticipated actions in office is the potential easing of sanctions imposed on Russia by his predecessor, Joe Biden.

Key Market Developments

  • Brent crude futures dropped by 0.28%, trading at $80.56 per barrel.
  • US light crude remained relatively steady, losing just 2 cents in the previous session, now sitting at $77.88 per barrel.
  • Despite the drop, both benchmarks posted a 1% increase last Friday, marking a fourth consecutive week of gains. This followed sanctions targeting Russian oil giants Gazprom Neft and Surgutneftegaz, actions that disrupted the Russian oil industry, potentially cutting supplies by 700,000 barrels per day.

These sanctions have sent Moscow’s major customers, notably China and India, on the hunt for alternative oil sources, driving up delivery prices significantly.

The Focus Shifts To Trump’s Inauguration

The market’s attention is now squarely on Trump’s inauguration, with speculation about what immediate decisions he may make. Analysts expect Trump to announce moves designed to stimulate the economy, such as lifting the moratorium on licenses for US liquefied natural gas (LNG) exports, a step aimed at bolstering US energy exports and market influence.

Market Outlook: Uncertainty Looms

While recent sanctions on Russia have put pressure on global oil supplies, particularly impacting the flow of nearly 1 million barrels per day, analysts from ANZ suggest that the recent price hikes may be temporary. Trump’s pledges to swiftly end the Russia-Ukraine conflict could lead to the easing of some sanctions, potentially stabilizing the oil market and softening prices shortly. The direction Trump takes on this issue will be crucial in determining the future of both global energy supplies and oil prices.

TikTok Returns To US App Stores 

TikTok is once again available for download in the Apple and Google app stores in the US, following a delay in the enforcement of its ban by former President Donald Trump. The ban’s postponement until April 5 gives the administration additional time to evaluate the situation.

Key Developments

The decision to restore TikTok access came after Google and Apple received reassurances from the Trump administration that they would not face legal consequences for reinstating the Chinese-owned app. According to Bloomberg, US Attorney General Pam Bondi sent a letter outlining these guarantees.

In an executive order signed on January 20, Trump instructed the attorney general not to take enforcement action for 75 days, providing time for his administration to determine how to proceed.

Uncertain Future For TikTok In The US

While TikTok is back on the US app stores, its long-term survival remains uncertain. If no deal is reached by early April to address national security concerns, the app may face another shutdown. ByteDance, the parent company, has insisted that TikTok is not for sale.

Legislation And Pressure On ByteDance

The Protecting Americans from Foreign Enemy-Controlled Apps Act, which passed with bipartisan support in Congress, mandates a nationwide ban on TikTok unless ByteDance sells its US operations. This law was signed by President Joe Biden in April of last year.

In late January, the app was briefly removed from US stores following the ban’s activation, impacting over 170 million American users. However, TikTok was restored soon after, following Trump’s intervention in his first hours as president. During that time, he signed an executive order allowing 75 days for a deal that would safeguard national security. Trump also suggested that the US could take a 50% stake in TikTok, a move he believed would keep the app “in good hands.”

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