Trump Urges Saudi Arabia and OPEC to Reduce Oil Prices Amid Ukraine Conflict
Crude oil futures fell after President Trump indicated he would ask Saudi Arabia and OPEC to lower prices. He linked high oil prices to the ongoing Ukraine conflict, suggesting that lowering prices could help end the war. Following his comments, U.S. and Brent crude prices decreased significantly.
On Thursday, crude oil futures experienced a decline after President Donald Trump announced his intention to request Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to reduce oil prices. During his speech at the World Economic Forum, Trump attributed the escalating oil prices to the ongoing Ukraine conflict, arguing that a decrease in crude prices would expedite the war’s conclusion.
Trump remarked, “I’m also going to ask Saudi Arabia and OPEC to bring down the cost of oil.” He emphasized the impact of high oil prices, stating, “They’re very responsible, actually, to a certain extent, for what’s taking place.” He attributed the loss of lives to the actions of these oil-producing entities.
Following Trump’s statements, U.S. crude oil prices fell by 85 cents, or 1.13%, settling at $74.59 per barrel. Similarly, the global benchmark Brent crude decreased by 73 cents, or 0.92%, to $78.27 per barrel. Notably, oil prices had risen earlier in the session before Trump made his remarks.
The reduction in oil prices has been significantly influenced by OPEC+, which includes Saudi Arabia and Russia, as well as six other member countries. They have maintained a collective production cut of 2.2 million barrels per day to stabilize prices, which they decided to extend through at least March 2025.
The relationship between oil prices and geopolitical events has long been a critical concern for global markets. President Trump’s statements highlight the sensitivity of oil markets to political interventions, especially concerning conflicts like the war in Ukraine. The influence of major oil producers, particularly within OPEC+, allows them to significantly sway global oil price trends and impact economies reliant on energy imports.
In summary, President Trump’s advocacy for a reduction in oil prices reflects the intertwined nature of energy markets and international conflict, particularly with regard to the war in Ukraine. His statements resulted in a notable drop in crude oil futures, which had been previously rising. OPEC+ continues to play a vital role in regulating oil supply and, consequently, prices on a global scale.
Original Source: www.cnbc.com
