Oil News: Trump Pressures OPEC as Crude Posts Weekly Decline

Oil Prices Decline Weekly as Trump Targets OPEC and Boosts Domestic Production

Crude oil prices steadied on Friday but ended the week lower, breaking a four-week winning streak. U.S. President Donald Trump’s renewed push to ramp up domestic oil production and pressure the Organization of the Petroleum Exporting Countries (OPEC) to lower prices overshadowed market sentiment.

Brent crude futures gained 0.27% to close at $78.50 per barrel, while West Texas Intermediate (WTI) added 0.05% to settle at $74.66 per barrel. Weekly losses, however, stood at 2.83% for Brent and 4.13% for WTI.

Trump Calls on OPEC to Slash Prices

On Friday, Trump intensified his call for OPEC to cut oil prices, tying it to the potential resolution of the Russia-Ukraine war. “One way to stop it quickly is for OPEC to stop making so much money and drop the price of oil,” Trump remarked during his North Carolina visit. The president also urged OPEC’s de facto leader, Saudi Arabia, to take action during the World Economic Forum earlier in the week.

Despite this pressure, OPEC+ delegates remain committed to their existing plan of raising oil production starting in April. Giovanni Staunovo, a commodities analyst at UBS, suggested that OPEC is unlikely to alter its policy unless market fundamentals shift. Analysts warn that Trump’s push to sanction Russia and Iran, key oil producers, may hinder his efforts to lower energy costs by tightening global supply.

U.S. Energy Policies Drive Oversupply Concerns

Trump’s declaration of a national energy emergency and rollbacks on environmental restrictions aim to maximize domestic oil and gas production. Chevron’s $48 billion Tengiz oilfield expansion, projected to add approximately 1% to global crude supply, underscores the growing potential for oversupply. Nikos Tzabouras of trading platform Tradu noted that while these policies could support demand, they risk exacerbating the global supply glut.

Analysts believe that much of the “low-hanging fruit” for U.S. supply growth has already been exploited, raising questions about the sustainability of this approach. Meanwhile, Trump’s threats to impose tariffs on China, the European Union, Canada, and Mexico add uncertainty to global growth prospects and, consequently, oil demand.

Inventories and Demand Projections Weigh on Prices

U.S. crude inventories hit their lowest level since March 2022, providing temporary support to prices. However, broader concerns about oversupply and weaker Chinese demand remain. Market strategists expect crude to trade within a range of $76.50 to $78 per barrel in the near term, with bearish factors such as sluggish global demand keeping a lid on significant price gains.

Market Forecast: Bearish Bias with Sideways Trading Likely

Crude oil prices are likely to face further downside pressure in the short term, weighed by Trump’s domestic production policies, geopolitical uncertainties, and global growth risks. While sanctions and falling inventories offer intermittent support, the overhang of potential oversupply and lackluster demand could keep prices confined to a narrow range. Traders should monitor developments in OPEC policy and U.S. energy actions as key market drivers in the weeks ahead.