President Donald Trump has called upon Saudi Arabia and the Organization of Petroleum Exporting Countries (OPEC) to reduce oil prices, a move that quickly influenced global oil markets. Crude oil futures saw a decline following Trump's remarks made during his address at the World Economic Forum. Prior to his speech, oil prices had been on the rise. Trump alleged that the Saudis and OPEC were exacerbating the conflict in Ukraine by maintaining elevated oil prices. He attributed the ongoing war's intensity to these prices, stating that millions of lives continued to be affected.
Trump's remarks highlighted the production cuts by Saudi Arabia, Russia, and six other OPEC+ members, who have been withholding 2.2 million barrels per day from the global market. These cuts were initially intended to prevent a drop in oil prices and were extended in December to last until at least March 2025. In response to Trump's statements, U.S. crude oil fell by 85 cents, or 1.13%, settling at $74.59 per barrel. Similarly, the global benchmark Brent dropped 73 cents, or 0.92%, closing at $78.27 per barrel.
"I'm also going to ask Saudi Arabia and OPEC to bring down the cost of oil," – Donald Trump
Trump suggested that by reducing oil prices, it might be possible to bring an end to the conflict between Russia and Ukraine. He claimed that high oil prices were indirectly fueling the war, which continued to claim numerous lives.
"If the price came down, the Russia-Ukraine war would end immediately." – Donald Trump
The former president's comments placed pressure on OPEC+, a group that includes some of the world's largest oil producers, to reconsider their production strategy. The existing cuts were originally put in place to stabilize prices in a fluctuating market environment. However, Trump's assertion that these measures were indirectly causing geopolitical instability adds a new dimension to the ongoing global energy discussion.