Oil Prices React to Trump's Call for Lower Costs

Following President Donald Trump's remarks at Davos, crude oil prices experienced a significant drop of over 1%. Trump's intention to persuade Saudi Arabia's Crown Prince Mohammed bin Salman and OPEC to reduce oil prices was a key factor, with the President suggesting that lower oil prices could potentially resolve the conflict between Russia and Ukraine.

Inventory Reports Add to the Pressure

Adding to the downward pressure on oil prices was the latest report from the American Petroleum Institute, which revealed a one million barrel increase in US inventories for the week ending January 16. This news further fueled the decline in oil prices, highlighting the complex factors influencing the market.

Market Response

By 11:49 am ET, West Texas Intermediate for March settlements had decreased by 1.10%, trading at $74.61 per barrel. Similarly, Brent for the same month's deliveries saw a decline of 1.04%, selling at $78.26 a barrel. These movements underscore the immediate impact of geopolitical statements and inventory reports on oil prices.