Crude oil futures dropped after President Trump announced his intention to ask Saudi Arabia and OPEC to lower oil prices. Trump linked high prices to the war in Ukraine, suggesting that reductions could lead to peace. Following his comments, U.S. crude declined by 1.13% and Brent by 0.92%. OPEC+ continues to withhold significant oil supplies to maintain price stability.
On Thursday, crude oil futures experienced a decline following comments made by President Donald Trump regarding oil prices. He stated that he would request both Saudi Arabia and OPEC to lower oil costs. Trump attributed elevated prices to the ongoing war in Ukraine, suggesting that price reductions could lead to a cessation of hostilities.
In his address to the World Economic Forum, Trump remarked, “If the price came down, the Russia-Ukraine war would end immediately.” He emphasized that Saudi Arabia and OPEC share some responsibility for the global crisis due to their pricing policies, claiming, “Millions of lives are being lost.” Consequently, U.S. crude oil dropped by 1.13% to $74.59 per barrel, while Brent crude fell by 0.92% to $78.27 per barrel, despite initially rising before his speech.
Currently, Saudi Arabia, Russia, and six other members of OPEC+ are withholding 2.2 million barrels of oil per day from the global market to stabilize prices. In December, this group decided to extend these production cuts until at least March 2025.
The fluctuations in crude oil prices are significantly influenced by the decisions of OPEC (Organization of the Petroleum Exporting Countries) and its allies, such as Russia. This collective group, known as OPEC+, employs production cuts to maintain higher oil prices, which can impact global markets and geopolitical situations, including conflicts like the ongoing war in Ukraine. President Trump’s remarks highlight the intertwined nature of energy costs and international conflicts.
In summary, President Trump’s call for Saudi Arabia and OPEC to reduce oil prices coincided with a notable decline in crude oil futures. His statements underscored the belief that lower oil prices could contribute to resolving international conflicts, such as the war in Ukraine. The ongoing production adjustments by OPEC+ reflect the organization’s strategy to stabilize and influence global oil markets effectively.
Original Source: www.cnbc.com
