Brent declines as Trump calls on OPEC to lower oil prices
The front-month ICE Brent contract has moved $0.76/bbl lower on the day, to trade at $78.30/bbl at 09.00 GMT.
PHOTO: Getty Images
Upward pressure:
A sharp decline in US crude oil inventories has provided some support to Brent futures.
According to the US Energy Information Administration (EIA), US commercial crude oil inventories dropped by 1 million bbls for the week ending 17 January to 411.7 million bbls, reaching their lowest level since March 2022.
Downward pressure:
US President Donald Trump recently announced an extensive plan to boost domestic oil and gas production and urged the Organization of the Petroleum Exporting Countries (OPEC) to take steps to lower crude oil prices.
Speaking on Thursday at the World Economic Forum in Davos, Switzerland, Trump demanded that OPEC and its de facto leader, Saudi Arabia, reduce the cost of crude oil barrels.
“Crude oil came under pressure after President Trump warned he wants the price of crude to be lower,” said Daniel Hynes, senior commodity strategist at ANZ Bank.
Similarly, Warren Patterson, head of commodities strategy at ING Bank, noted, “Oil prices came under pressure yesterday after President Trump's virtual address at the World Economic Forum at Davos, where he called for lower oil prices.”
Earlier this week, Trump declared a national energy emergency and rolled back environmental restrictions on energy infrastructure as part of his plan to maximize domestic oil and gas production, further weighing on Brent futures.
By Tuhin Roy
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