Global oil prices fell on Monday following renewed calls by former U.S. President Donald Trump for the Organization of the Petroleum Exporting Countries (OPEC) to slash prices. Trump’s remarks were tied to his strategy to pressure oil-rich Russia financially and expedite the end of the war in Ukraine.
By 04:30 GMT, Brent crude futures had slipped by 53 cents (0.68%), trading at $77.97 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped by 50 cents (0.67%) to settle at $74.16 per barrel.
Speaking on Friday, Trump called on OPEC to “stop making so much money and drop the price of oil,” suggesting that such a move could accelerate the resolution of the Ukraine conflict. He also warned of potential taxes, tariffs, and sanctions on Russia and its allies if diplomatic progress on the war was not achieved soon.
“One way to stop [the war] quickly is for OPEC to stop making so much money and drop the price of oil … That war will stop right away,” Trump stated.
Russian President Vladimir Putin, responding to Trump’s comments, expressed openness to meeting with him to discuss energy prices and the ongoing conflict in Ukraine.
Market analysts have noted that Trump’s policies to boost U.S. oil and gas output are aimed at securing overseas markets for American crude, potentially challenging OPEC’s market dominance.
“He’s going to want to muscle into some of the OPEC market share, so in that sense, he’s kind of a competitor,” said Stephen Driscoll, an oil market analyst.
Despite Trump’s call, OPEC and its allies, including Russia, have yet to issue an official response. Delegates from the OPEC+ coalition pointed to their existing plan to gradually increase oil output starting in April.
The downward pressure on oil prices comes after both Brent and WTI benchmarks recorded their first weekly decline in five weeks. This easing of prices follows reduced concerns about sanctions disrupting Russian oil supplies.
Goldman Sachs analysts have projected minimal impact on Russian oil production, citing the availability of non-sanctioned ships to transport Russian crude and the appeal of discounted Russian ESPO grades to price-sensitive buyers.
“As the ultimate goal of sanctions is to reduce Russian oil revenues, we assume that Western policymakers will prioritize maximizing discounts on Russian barrels over reducing Russian volumes,” Goldman Sachs analysts noted in a report.
Trump’s push for lower oil prices and his broader strategy to boost U.S. oil exports signal potential shifts in global energy markets. While OPEC+ remains committed to its output plan, the interplay between U.S. production policies, geopolitical tensions, and demand for discounted Russian oil will likely shape oil price dynamics in the coming months.
