Oil Prices Settle Slightly Higher, Post Weekly Decline
Oil prices settled slightly higher on Friday (Jan 24) but posted a weekly decline, ending four straight weeks of gains, after US President Donald Trump announced sweeping plans to boost domestic production while demanding that Opec move to lower crude prices.
Market Reaction
Brent crude futures settled up US$0.21, or 0.27 per cent, at US$78.50 a barrel. US West Texas Intermediate crude (WTI) settled up US$0.04, or 0.05 per cent, at US$74.66.
Brent has lost 2.8 per cent this week while WTI was down 4.1 per cent.
Trump’s Demand
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.
“One way to stop it quickly is for Opec to stop making so much money and drop the price of oil… that war will stop right away,” Trump said as he landed in North Carolina to view storm damage.
Analyst Insights
The threat of harsh US sanctions on Russia and Iran, which are key oil producers, could undermine Trump’s goal of lowering energy costs, StoneX analyst Alex Hodes said in a note on Friday.
“Trump knows this and has leaned on Opec to cover the void that these will create,” Hodes said.
Opec’s Response
Opec+, which includes Russia, has yet to react, with delegates from the group pointing to a plan already in place to start raising oil output from April.
Conclusion
Oil prices settled slightly higher on Friday, but posted a weekly decline, ending four straight weeks of gains. The market is expected to remain cautious in the coming days, with potential negative implications for global growth and oil demand prospects.
FAQs
Q: What is the current price of Brent crude oil?
A: The current price of Brent crude oil is US$78.50 a barrel.
Q: What is the current price of US West Texas Intermediate crude oil?
A: The current price of US West Texas Intermediate crude oil is US$74.66 a barrel.
Q: What is Trump’s demand from Opec?
A: Trump is demanding that Opec cut oil prices to hurt oil-rich Russia’s finances and help bring an end to the war in Ukraine.
Q: What is the impact of Trump’s policies on oil prices?
A: Trump’s policies, including boosting domestic production and demanding that Opec cut oil prices, are expected to have a mixed impact on oil prices, with potential negative implications for global growth and oil demand prospects.
Q: What is the current situation with Opec+?
A: Opec+, which includes Russia, has yet to react to Trump’s demand, with delegates from the group pointing to a plan already in place to start raising oil output from April.
