Oil prices dropped on Monday after U.S. President Donald Trump called on OPEC to reduce oil prices following the announcement of various measures to boost U.S. oil and gas output during his first week in office.
Brent crude futures dropped by 53 cents, or 0.68%, to $77.97 per barrel, while U.S. West Texas Intermediate crude fell by 50 cents, or 0.67%, to $74.16 per barrel.
Trump reiterated his call for the Organization of the Petroleum Exporting Countries (OPEC) to lower oil prices to hurt Russia’s finances and help end the ongoing 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 stated.
He also warned Russia and other participating countries that taxes, tariffs, and sanctions would be imposed if a resolution to the war in Ukraine is not reached soon.
Russian President Vladimir Putin suggested that he and Trump meet to discuss the war in Ukraine and energy prices.
John Driscoll from Singapore-based consultancy JTD Energy said, “They are positioning for negotiations,” adding that this creates volatility in the oil markets.
