Oil Prices: Trump's Call for Increased Drilling Faces Resistance
President Trump's efforts to lower oil prices through increased drilling are facing setbacks from both domestic and international producers.
US producers reportedly have no plans to ramp up production, while OPEC+ has declined to meet the White House's request for additional output.
Despite the Trump administration's commitment to deregulating the oil and gas industry, US shale firms are already producing record amounts of oil. Further drilling could threaten profitability and exacerbate the global supply glut.
ExxonMobil CEO Darren Woods has warned of declining industry revenues and profits if crude prices continue to fall.
To curb rising oil prices, Trump had hoped for support from OPEC+, but sources indicate Saudi officials are unwilling to boost supply. The cartel has been voluntarily restricting output to maintain higher market prices.
OPEC+'s decision to delay a production increase until April and gradually rollback curbs suggests a cautious approach. The cartel plans to bring 2.1 million barrels online by late 2026.
Industry experts predict a potential price war between Trump and Saudi Arabia as the former seeks to lower prices while the latter aims to protect its profits.