Crude oil futures dropped after President Trump indicated he would request that Saudi Arabia and OPEC lower oil prices, linking high prices to the war in Ukraine. West Texas Intermediate fell to $74.59 per barrel, while Brent crude reached $78.27 per barrel. The global oil market is influenced by OPEC+’s current production cuts of 2.2 million barrels per day.
On Thursday, crude oil futures declined following a statement by President Donald Trump, who announced intentions to request Saudi Arabia and OPEC to lower oil prices. Trump attributed the ongoing war in Ukraine to elevated oil costs, suggesting that reducing these prices could hasten the conflict’s resolution. Consequently, West Texas Intermediate fell by 1.13% to $74.59 per barrel, while Brent crude dropped by 0.92% to $78.27 per barrel after having shown a rising trend earlier in the day.
Trump criticized Saudi Arabia and OPEC members for their role in manipulating oil prices, asserting that such actions contribute to global crises, including the devastating effects of the war in Ukraine. He stated, “They’re very responsible, actually, to a certain extent, for what’s taking place. Millions of lives are being lost.” This assertion came during his address at the World Economic Forum.
To manage prices, Saudi Arabia, Russia, and other members of OPEC+ are currently withholding 2.2 million barrels per day from the market, a cut that was extended until at least March 2025. This measure aims to stabilize and prevent a drastic decrease in oil prices, even as geopolitical tensions fluctuate.
Crude oil prices are heavily influenced by geopolitical events and production decisions made by OPEC and its affiliates. The current geopolitical landscape, particularly the war in Ukraine, synergizes with these production strategies to create significant market fluctuations. The ongoing cuts by OPEC+ are part of a measured approach to prevent price volatility, yet external pressures, such as governmental requests, can impact their efficacy.
In summary, President Trump’s comments on oil prices have notably led to a decline in crude oil futures. His assertion that reducing these prices could help resolve the Ukraine conflict highlights the complex interplay between energy costs and global crises. OPEC’s production cuts continue to play a crucial role in maintaining oil price stability in light of these issues.
Original Source: www.cnbc.com
