Oil Heads for First Weekly Decline as Trump Demands Lower Prices
Oil prices are poised for their first weekly decline of 2023, pressured by President Donald Trump's threats of trade wars and demand for lower crude prices from OPEC+.
West Texas Intermediate futures edged down toward $74 per barrel after Russian President Vladimir Putin expressed willingness to discuss Ukraine and oil prices with Trump. Trump had earlier threatened additional penalties on Moscow if Putin did not "make a deal" to end the conflict.
US sanctions on Russian oil, imposed before Trump took office, have tightened the global market. Easing these sanctions could boost supplies for Asian buyers seeking alternatives.
Oil markets have been swayed by Trump's statements since his inauguration on Monday. He initially threatened tariffs on Canada, Mexico, and China, followed by a pledge to request OPEC+ lower oil prices.
"He just wants the price lower," said Nadia Martin Wiggen, a director at Svelland Capital. "He wants gasoline prices lower for the consumer, and he wants oil prices just to be lower... especially than what the Biden administration had."
New York futures are on track for a weekly decline of over 4%, but remain higher for the year due to cold weather and Russian sanctions. However, some of the strength in crude and freight markets following the sanctions has since abated.
Trump issued an executive order declaring a national energy emergency to boost domestic production. Previously, he repeatedly urged OPEC+ to lower prices when he deemed them excessive and pledged to refill US oil reserves to capacity.