Crude oil prices faced significant downward pressure this week, driven by President Donald Trump’s direct call for lower oil prices and bearish inventory data from the United States. While tightening supplies from Russian sanctions and strong seasonal heating fuel demand provided some support, demand-side concerns and rising U.S. gasoline inventories tipped the scales, leaving markets under pressure.
How Did Trump’s Comments Influence Market Sentiment?
President Donald Trump’s remarks at the World Economic Forum served as a major catalyst for this week’s crude oil market downturn. Trump explicitly urged Saudi Arabia and OPEC to lower oil prices, arguing that high prices were enabling Russia to fund its war in Ukraine. “If the price came down, the Russia-Ukraine war would end immediately,” Trump said, sending a clear message to OPEC producers to act quickly.
In addition to his comments on oil prices, Trump raised the specter of tariffs, threatening 25% levies on Canadian and Mexican imports and a 10% duty on Chinese goods. These remarks added uncertainty to energy trade and global demand forecasts, fueling bearish sentiment. Traders responded with selling pressure, particularly in the second half of the week, as Trump’s rhetoric clashed with his administration’s pro-oil production policies?.