Oil prices came under pressure yesterday after President Trump's virtual address at the World Economic Forum at Davos, where he called for lower oil prices. The president said he would ask Saudi Arabia and OPEC members to bring prices down by increasing output. Trump said that lower oil prices could be used as a way to pressure Russia and help bring an end to the war in Ukraine, ING’s commodity analyst Warren Patterson notes.
Oil prices trades lower after President Trump’s speech at WEF
“In his previous term, President Trump was very vocal about OPEC needing to pump more oil. However, with Russia becoming increasingly more aligned with OPEC members through the OPEC+ alliance, as well as higher fiscal breakeven oil prices for key members, it will be no easy task to convince OPEC to increase output. According to the IMF, Saudi Arabia is estimated to have a fiscal breakeven oil price just shy of US$91/bbl. Furthermore, lower oil prices would also be an obstacle to significantly increasing US oil production.”
“The EIA’s weekly oil report showed that US commercial crude oil inventories fell by 1.02m barrels over the last week. This is the ninth consecutive week of declines in crude inventories, which leaves stocks at their lowest level since March 2022. This decline came despite refiners slashing run rates, which was driven by maintenance largely in the US Gulf Coast.”
“Refiners cut utilization rates by 5.8pp week-on-week, which saw crude oil inputs decline by 1.13m b/d. On the trade side, crude imports increased 621k b/d WoW, while exports also increased by 437k b/d. The increase in imports was largely driven by stronger flows from Canada. As for refined products, gasoline stocks increased by 2.33m barrels, despite the big fall in refinery activity. However, gasoline stocks on the East Coast fell following the temporary outage along the Colonial pipeline. Meanwhile, distillate stocks fell by 3.07m barrels WoW.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD looks sidelined below 1.1400, Dollar on the defensive
EUR/USD now loses some upside traction amid a consolidative range in the area below the key 1.1400 barrier at the beginning of the week, all against the backdrop of a mild pullback in the US Dollar and further repricing of US tariffs.
GBP/USD remains well bid just below 1.3200
Following an early uptick to two-week highs around 1.3200, GBP/USD now gives away part of that advance and settles around 1.3170 amid a tepid retracement in the Greenback. All eyes remain on the unfolding US-China trade developments.
Gold retreats from record-high, holds above $3,200
Gold pulls away from the new record-high it set at $3,245 at the weekly opening but manages to hold comfortably above $3,200. Easing concerns over a deepening trade conflict between the US and China seem to be causing XAU/USD to enter a consolidation phase.
Six Fundamentals for the Week: Tariffs, US Retail Sales and ECB stand out Premium
"Nobody is off the hook" – these words by US President Donald Trump keep markets focused on tariff policy. However, some hard data and the European Central Bank (ECB) decision will also keep things busy ahead of Good Friday.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.