Oil Slips as Trump Calls for Lower Prices
President Donald Trump has urged Saudi Arabia and OPEC to reduce oil prices, echoing a strategy he employed during his previous term.
West Texas Intermediate futures dipped around 1% below $75 a barrel, while Brent crude fell below $79. OPEC+ has been cutting output to support prices for years.
"I’m also going to ask Saudi Arabia and OPEC to bring down the cost of oil," Trump said virtually at Davos on Thursday.
OPEC representatives did not immediately comment on Trump's remarks. The White House confirmed Trump's conversation with Saudi Crown Prince Mohammed Bin Salman, discussing Middle East stability and "mutual prosperity," but did not mention oil specifically.
Trump has frequently intervened in the oil market. He previously urged OPEC+ to lower prices and negotiated a cut with Saudi Arabia and Russia during the pandemic's onset in 2020.
"The 'Trump call option' on energy prices is a new variable in oil markets," said Frank Monkam of Buffalo Bayou Commodities.
Trump's remarks halted an earlier rally driven by U.S. sanctions on Russian crude, which are tightening the global market.
Oil is still up for the year due to Russia sanctions and cold weather boosting heating demand.
U.S. crude inventories declined 1.02 million barrels last week, marking a ninth consecutive weekly drop to their lowest level since March 2022, according to government data. Gasoline inventories increased by 2.33 million barrels.