Oil Prices Settle Higher After Trump’s Call for Lower Prices; Weekly Decline Ends 4-Week Gains
Oil prices settled slightly higher on Friday but posted a weekly decline, ending four straight weeks of gains, after U.S. President Donald Trump announced sweeping plans to boost domestic production while demanding that OPEC move to lower crude prices.
Brent futures settled up 21 cents, or 0.27%, to $78.50 a barrel. U.S. West Texas Intermediate crude (WTI) settled up 4 cents, or 0.05%, to $74.66. Brent has lost 2.8% this week while WTI was down 4.1%.
Trump on Friday reiterated his call for the Organization of the Petroleum Exporting Countries to cut oil prices to hurt oil-rich Russia’s finances and help bring an end to the war in Ukraine.
“The threat of harsh U.S. sanctions on Russia and Iran, which are key oil producers, could undermine Trump’s goal of lowering energy costs,” said StoneX analyst Alex Hodes.
Chevron said on Friday it had started production at a $48 billion expansion of the giant Tengiz oilfield, which will bring its output to around 1% of global crude supply, potentially pressuring OPEC’s efforts to limit production.
Trump’s policies have largely followed predictions on the supply side, including cutting red tape to promote domestic supply growth. However, concerns persist about oversupply in the global market and projections of ailing Chinese demand.
Analysis:
In summary, oil prices settled higher after Trump’s call for lower prices, but a weekly decline ended four weeks of gains. Trump’s push for OPEC to cut prices could impact global oil supply and demand dynamics. The expansion of the Tengiz oilfield by Chevron adds to concerns of oversupply in the market. Uncertainty around tariffs and potential sanctions continue to weigh on crude futures. Overall, these factors could affect oil prices and global economic growth, making it crucial for investors to monitor developments in the oil market closely.