SINGAPORE, Jan 22 Reuters Oil prices dipped on Wednesday extending the previous session39;s declines as markets weighed U.S. President Donald Trump39;s declaration of a national energy emergency on his first day in office and eyed his tariff policies.

Brent crude futures fell 36 cents, or 0.5, to 78.93 per barrel at 0730 GMT. U.S. West Texas Intermediate crude futures dropped 46 cents, or 0.6, at 75.37.

The contracts settled lower on Tuesday after Trump laid out a sweeping plan to maximise oil and gas production, including declaring a national energy emergency to speed permitting, rolling back environmental protections, and withdrawing the U.S. from the Paris climate pact.

Market participants are trying to digest the mixed signals that Trump 2.0 bring for the trajectory for oil prices, said Yeap Jun Rong, market strategist at IG.

Nearterm focus will be on whether his aim to fill up the U.S. strategic reserves materialises, said Yeap.

Trump39;s latest energy policy is unlikely to spur nearterm investment or change U.S. production growth, analysts at Morgan Stanley wrote in a note, adding that it could, however, moderate potential erosion of refined product demand.

Analysts also questioned if Trump39;s promise to refill the strategic reserve would make any changes to oil demand as the Biden administration was already purchasing oil for the emergency stockpile.

Meanwhile, investors were cautious as Trump said he was thinking of imposing 25 tariffs on imports from…