Crude oil prices dropped after President Trump announced his intention to request Saudi Arabia and OPEC to reduce prices, linking high oil costs to the war in Ukraine. U.S. crude declined 1.13% to $74.59 per barrel, while Brent crude fell 0.92% to $78.27, with OPEC+ cutting production to stabilize the market.
On Thursday, crude oil futures declined following President Donald Trump’s announcement regarding his intention to request Saudi Arabia and OPEC to lower oil prices. During his address at the World Economic Forum, President Trump asserted that the elevated oil prices were exacerbating the conflict in Ukraine and suggested that a reduction could lead to the end of the war. He emphasized the accountability of the Saudis and OPEC for the ongoing humanitarian crisis, stating, “Millions of lives are being lost.”
In response to President Trump’s comments, U.S. crude oil fell by 85 cents, or 1.13%, landing at $74.59 per barrel, while Brent crude, the global benchmark, decreased by 73 cents, or 0.92%, to $78.27 per barrel. Prior to the President’s remarks, prices had been on an upward trajectory. OPEC+ members, including Saudi Arabia and Russia, have been maintaining significant production cuts of 2.2 million barrels per day to stabilize prices, which are set to continue until at least March 2025.
The oil market has been significantly affected by geopolitical tensions, particularly the war in Ukraine, which has driven prices higher. In response, leaders such as President Trump are advocating for reduced oil prices to alleviate economic pressures and stabilize the situation. OPEC+, which includes major oil-producing nations, has been actively managing oil production levels to maintain favorable pricing, reflecting the delicate balance between supply and demand in the global market.
In conclusion, President Trump’s call for lower oil prices aims to address the humanitarian impacts of the war in Ukraine, reflecting the interconnectedness of global energy markets and geopolitical events. As prices fell in response to his announcement, the ongoing production cuts by OPEC+ members highlight the complexities of managing oil supply amidst fluctuating global demands.
Original Source: www.cnbc.com
