LONDON (Reuters):Thursday saw little movement in oil prices, which continued to decline from the previous session due to uncertainty about the impact of U.S. President Donald Trump's proposed energy policies and tariffs on global economic growth and energy demand.

By 0941 GMT, Brent crude prices had dropped 2 cents to $78.98 a barrel. At $75.40, U.S. West Texas Intermediate crude (WTI) dropped 4 cents.

Senior market analyst Priyanka Sachdeva of broking Phillip Nova stated, "Oil markets have given back some recent gains due to mixed drivers."

"Key factors include expectations of increased U.S. production under President Trump's pro-drilling policies and easing geopolitical stress in Gaza, lifting fears of further escalation in supply disruption from key producing regions."

The wider economic effects of US tariffs may further reduce

growth in the world's oil demand, she continued.

If Russia does not reach an agreement to cease its war in Ukraine, Trump has threatened to impose further penalties on the country.

Additionally, he pledged to put 25% taxes on Canada and Mexico and to levy duties on the European Union. Trump claimed that because fentanyl is being shipped from China to the US, his administration was considering imposing a 10% punitive duty on the country.

He announced a national energy emergency on Monday, which will give him the power to loosen environmental regulations on energy projects and infrastructure and to make it easier to obtain permits for new pipeline and transmission projects.

The oil market may experience "further possible negative choppy volatility in the short future due to

He announced a national energy emergency on Monday, which will give him the power to loosen environmental regulations on energy projects and infrastructure and to make it easier to obtain permits for new pipeline and transmission projects.

According to Kelvin Wong, a senior market analyst at OANDA, there will be "more potential downward choppy movement in the oil market in the near term due to the Trump administration's lack of clarity on trade tariffs policy and impending higher oil supplies from the U.S."