Trump’s OPEC+ Price Cut Demands Stall WTI Oil’s Momentum Near $74.50

Image Credit: Reuters

West Texas Intermediate (WTI) Oil prices are breaking their six-day losing streak, trading around $74.40 per barrel during early Asian trading on Friday. However, crude oil prices are still on track for a weekly decline after US President Donald Trump unveiled a plan to boost US oil production and urged OPEC (Organization of the Petroleum Exporting Countries) to reduce crude oil prices.

In a speech at the World Economic Forum in Davos, Switzerland, President Trump called on OPEC and its top member, Saudi Arabia, to cut oil prices, according to Reuters. Oil prices saw some upward movement following Trump’s comments late Thursday, where he also called for the US Federal Reserve to immediately lower interest rates. He stated, “With oil prices falling, I’ll demand that interest rates be cut immediately, and they should be reduced worldwide.” Lower borrowing costs could improve US economic conditions, boosting demand for crude oil.

Furthermore, oil demand might rise following Trump’s comments about avoiding tariffs on China, the world’s largest oil importer. He expressed optimism about a potential trade deal with China after a discussion with President Xi Jinping on Thursday, suggesting progress in US-China trade talks.

Additionally, the US Energy Information Administration (EIA) weekly report revealed that US crude oil stockpiles fell by 1.017 million barrels for the week ending January 17. This decline was smaller compared to the previous week’s drop of 1.962 million barrels and less than the market’s expectation of a 2.1 million barrel decrease.

 

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