Oil Prices Experience Decline Amid Trump’s OPEC Recommendations
Oil prices have decreased by over one percent today, following U.S. President Trump’s renewed call for OPEC to lower oil prices. This comes in light of his announcement of extensive measures aimed at boosting U.S. oil and gas production during his first week in office.
Brent crude futures fell by 87 cents, a decline of 1.11 percent, settling at $77.63 per barrel as of 00:43 GMT, despite a 21-cent gain at Friday’s close. Similarly, the U.S. West Texas Intermediate crude saw a drop of 89 cents, or 1.19 percent, bringing it down to $73.77 per barrel.
In recent statements, Trump emphasized the need for the Organization of Petroleum Exporting Countries (OPEC) to reduce oil prices, arguing that such a move would adversely affect Russia’s oil revenues and contribute to efforts aimed at resolving the ongoing conflict in Ukraine. Trump stated, “One of the ways to stop this quickly is for OPEC to stop making a lot of money; reducing oil prices could bring an end to this war immediately.”
In response to these developments, Russian President Vladimir Putin expressed his intent to meet with Trump to discuss the Ukraine conflict and energy prices. However, OPEC and its allies, including Russia, have yet to respond to Trump’s invitation. OPEC delegates have referenced a pre-existing plan to increase oil production starting in April.
Notably, both Brent and WTI registered their first five-week decline last week, spurred by concerns over sanctions on Russia that could disrupt global oil supplies. Further volatility in the oil market is anticipated following Trump’s announcement on Sunday of comprehensive retaliatory measures against Colombia, including tariffs and sanctions, after the nation declined to accept two U.S. military planes carrying migrants being deported.
Data from Kepler Analysis indicates that the United States is the primary importer of Colombian crude oil exports transported by sea, with anticipated purchases of approximately 183,000 barrels per day in 2024, accounting for 41% of Colombia’s total exports. Moreover, the U.S. Energy Information Administration reported that in 2023, the U.S. imported 228,000 barrels per day of crude and its products from Colombia.
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Commodity | Price Change | Current Price |
---|---|---|
Brent Crude | -$0.87 (-1.11%) | $77.63/barrel |
West Texas Intermediate | -$0.89 (-1.19%) | $73.77/barrel |