Oil rates decline as Trump urges OPEC to reduce prices
Date
1/27/2025 2:29:25 AM
(MENAFN) Oil prices dropped by over 1 percent on Monday after U.S. President Donald Trump urged OPEC to reduce prices, following his recent announcement of extensive measures to boost U.S. oil and gas production during his first week in office.
Brent crude futures fell by 87 cents, or 1.11 percent, to USD77.63 per barrel as of 0043 GMT, after gaining 21 cents on Friday. Similarly, U.S. West Texas Intermediate (WTI) crude decreased by 89 cents, or 1.19 percent, to USD73.77 per barrel.
On Friday, Trump reiterated his demand for OPEC to lower oil prices, suggesting it could weaken oil-dependent Russia’s economy and expedite the end of the war in Ukraine.
"Lowering oil prices would immediately halt the war, as OPEC would stop profiting excessively," Trump stated.
OPEC and its allies, including Russia, have yet to respond to Trump’s appeal. However, members of the OPEC+ alliance indicated plans to begin increasing oil production in April.
Last week, Brent and WTI crude saw their first weekly declines in five weeks, as concerns about supply disruptions due to sanctions on Russia began to subside.
Goldman Sachs analysts noted that Russian production might not face significant challenges, as higher freight costs have spurred the use of non-sanctioned ships to transport Russian oil. Additionally, discounted Russian ESPO crude continues to attract cost-conscious buyers.
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