Trump Urges OPEC to Lower Oil Prices, Pressure Russia, and End Ukraine War
Former US President Donald Trump called on Saudi Arabia and other OPEC nations to increase oil production, arguing that lower prices would weaken Russia and expedite an end to the ongoing Ukraine conflict.
During a virtual address at the World Economic Forum in Davos, Switzerland, Trump emphasized that "If the price came down, the Russia-Ukraine war would end immediately."
His plea for increased production coincides with the recent imposition of sanctions on Russian oil exports, which have had a significant impact. Despite an initial decline in oil prices following Trump's speech, it remains uncertain whether OPEC will comply with his request, given their cautious approach to reversing production cuts implemented in 2022.
Beyond the oil issue, Trump expressed economic grievances, criticizing the EU's sales taxes, which he claims are unfair to the US, and accusing banks of discriminating against conservative clients.
He reaffirmed his threat to impose tariffs on products not manufactured in the US, warning European businesses that "If you don’t make your product in America... you will have to pay a tariff."
Trump also demanded immediate interest rate cuts, attributing the high deficits and "economic chaos" to his predecessor's policies.
While presidents typically refrain from commenting directly on central bank policy, Trump maintains the right to influence interest rates. His focus on OPEC production is not new, as he has previously pressured the cartel to adjust output.
Obstacles exist to any substantial increase in OPEC production, considering their efforts to stabilize prices by limiting supply. Additionally, high oil prices are crucial for Saudi Arabia's budget balance.
In the US, Trump advocates for increased domestic energy production, but oil executives remain hesitant to boost output significantly.
Trump highlighted investment commitments by companies like SoftBank and Saudi Arabia's Crown Prince Mohammed Bin Salman, pledging to increase investments and trade with the US by $600 billion, a figure he aims to raise to $1 trillion.
Despite participating virtually, Trump's presence at Davos has garnered significant attention, with some attendees expressing enthusiasm and others raising concerns about his policies.
In response to questions, Trump vowed to secure US energy supply for Europe, emphasizing that "If we make a deal, you’ll get it." He also pledged to undo Biden-era climate change initiatives and promote domestic fossil fuel production.
Regarding the Russia-Ukraine war, Trump holds Russia responsible for a peace agreement, expressing hope that China may play a mediating role.