By The Rio Times | Created at 2025-01-24 01:11:55 | Updated at 2025-01-31 19:58:21
1 week ago
The oil market experienced another day of losses, extending its downward trend for the sixth consecutive day. This decline came in response to President Donald Trump’s statements and a larger-than-expected drop in US oil inventories.
The Wall Street Journal reported these developments. Oil prices initially rose as traders attempted to recover from previous losses. However, Trump’s remarks at the World Economic Forum in Davos quickly reversed this trend.
He declared his intention to ask Saudi Arabia and OPEC to reduce oil prices immediately. Trump asserted that lower oil prices could end the Russia-Ukraine conflict. He stated, “The price is high enough for the war to continue. We need to lower the oil price.”
His comments sparked uncertainty in the market. The US President also claimed that imposing tariffs on foreign trade would bring billions, even trillions, of dollars to the US Treasury.
These statements raised concerns about global economic growth and energy demand. Earlier in the week, Trump declared a national energy emergency. This move aimed to reduce environmental restrictions on energy projects and infrastructure.
Trump’s Remarks and Falling US Stocks Drive Oil Prices Down for Sixth Day. (Photo Internet reproduction)It also sought to streamline approvals for new transmission infrastructure and pipelines. US oil inventories fell to their lowest level since March 2022, further pressuring commodity prices.
Supply Decline and Price Movements
The Energy Department reported a decrease of 1.017 million barrels to 411.663 million barrels last week. This drop exceeded analysts’ expectations of a 500,000-barrel decline.
In response to these factors, Brent crude futures for March delivery fell 0.76% to $77.56 per barrel on the Intercontinental Exchange in London. Similarly, West Texas Intermediate crude futures for March dropped 1.09% to $74.62 per barrel on the New York Mercantile Exchange.
The oil market remains sensitive to geopolitical statements and economic data. Traders continue to monitor these developments closely as they impact global energy prices and supply-demand dynamics.
