By Laila Kearney and Gabrielle Ng

(Reuters) – Oil prices were little changed on Friday but headed for a weekly decline after US President Donald Trump issued a broad plan to boost US production and demand. of OPEC to lower the price of crude oil.

futures were down 9 cents at $78.20 a barrel at 0445 GMT on Friday, while US West Texas Intermediate crude (WTI) fell 9 cents to $74.53.

For the week, Brent fell 3.18% so far, while WTI shed 4.28%.

“Crude oil prices are lower overall this week, as investors cut war premiums after the Gaza ceasefire while preparing for Trump’s energy policy changes,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“So far, Trump has been as unpredictable as predicted, setting oil prices up for headline-oriented volatility ahead,” Sachdeva added.

Trump, during his speech on Thursday at the World Economic Forum in Davos, Switzerland, said he will demand that the Organization of the Petroleum Exporting Countries and its de facto leader, Saudi Arabia, lower the cost of crude oil barrels. .

He also said he would ask Riyadh to increase a US investment package to $1 trillion, up from $600 billion reported by the Saudi state news agency earlier in the day.

Trump declared a national energy emergency on Monday, reinstating environmental restrictions on energy infrastructure as part of a plan to boost domestic oil and gas production.

On Wednesday, he vowed to hit the European Union with tariffs and impose 25% tariffs against Canada and Mexico, and said his administration was considering a 10% punitive duty on China.

As attention shifts to a possible February timeline for new tariffs set by Trump, caution is likely to remain in the market as any new trade restrictions would carry negative effects. implications for global growth, potentially weighing on oil demand prospects, said Yeap Jun Rong, market strategist at IG.

Traders expect oil prices between $76.50 and $78 per barrel, Yeap added.

While strong catalysts such as a significant drawdown in stocks provided temporary positive changes, a general oversupply in the global market and the sick projections of demand in China continues to weigh on crude oil futures, Phillip Nova’s Sachdeva said.

U.S. crude oil inventories last week hit their lowest level since March 2022, according to the U.S. Energy Information Administration.

The EIA report, issued a day late due to a US holiday on Monday, said crude stockpiles fell by 1 million barrels to 411.7 million barrels in the week to January. 17, marking the ninth consecutive weekly decline. (EIA/S)