Oil Prices Tumble Amid Trump Pressure

27 Jan 2025 , 10:19 AM

Following the announcement of extensive measures to increase U.S. oil and gas output in his first week in office, U.S. President Trump urged OPEC to lower prices, which caused oil prices to drop more than 1% on Monday.

After finishing up 21 cents on Friday, Brent crude futures fell 87 cents, or 1.11%, to $77.63 a barrel.

At $73.77 per barrel, U.S. West Texas Intermediate crude was down 89 cents, or 1.19 percent.

Trump reaffirmed his demand on Friday that the Organization of the Petroleum Exporting Countries lower oil prices in order to harm the finances of oil-rich Russia and contribute to the end of the conflict in Ukraine.

In addition, Trump has threatened to impose taxes, levies, and penalties on Russia “and other participating countries” if an agreement to stop the conflict in Ukraine is not reached quickly.

Vladimir Putin, the president of Russia, stated on Friday that he and Trump ought to meet to discuss energy costs and the conflict in Ukraine.

OPEC+ delegates have pointed to an existing plan to begin increasing oil supply in April, but OPEC and its allies, including Russia, have not yet responded to Trump’s appeal.

Last week, both benchmarks saw their first drop in five weeks as worries about supply disruptions due to sanctions on Russia subsided.

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