U.S. President Donald Trump presses Saudi Arabia and the Organization of Petroleum Exporting Countries (OPEC) to reduce global oil prices, claiming such a move would help end the Russia-Ukraine war. Speaking at the World Economic Forum in Davos, Switzerland, on Thursday, Trump argues that lowering oil prices would weaken Russia’s financial capacity and accelerate the end of the conflict.
Trump, who has long promised to end the war if re-elected, suggests that OPEC’s decision to keep prices high contributes to the ongoing violence. He states, “If the price came down, the Russia-Ukraine war would end immediately,” adding that the high cost of oil has played a role in prolonging the crisis. He further links lower oil prices to economic benefits, including reducing inflation, particularly in the United States and globally.
“They should have done it long ago,” Trump says, emphasizing that a reduction in oil prices could bring an end to the war. He also calls for a global reduction in interest rates to align with any decrease in oil prices.
Trump’s comments follow ongoing U.S. sanctions on Russia’s oil and gas industry, which have disrupted global oil markets. This has prompted countries like China and India to turn to OPEC nations, especially in the Middle East, for alternative oil supplies. After Trump’s remarks, oil prices dip, with Brent crude falling slightly below $80 per barrel.
Nigeria’s government bases its 2025 budget and the 2025-2027 Medium Term Expenditure Framework (MTEF) on an oil price of $75 per barrel. A significant drop in global oil prices could severely impact the country’s revenue, which depends heavily on oil exports. As Nigeria struggles to increase oil production and compete with other top producers, experts advise focusing on boosting output to maintain its position in the global market, regardless of price fluctuations.
A decrease in global oil prices would also likely lead to a reduction in domestic fuel prices, which have recently risen sharply. The current price of fuel in Nigeria has surged to around N1,000 per liter, partly due to rising global oil prices.