Oil prices were little changed on Friday but headed for a weekly decline after US President Donald Trump issued a sweeping plan to boost US production and demanded OPEC lower crude prices.
Brent crude futures were up 6 cents at $78.35 a barrel at 0745 GMT, while US West Texas Intermediate crude (WTI) was 4 cents higher at $74.66.
For the week, Brent is down 3.07% so far, and WTI down 4.17%.
“Crude prices have been easing all through this week, as investors trimmed war premiums after the Gaza ceasefire while bracing for Trump’s energy policy change,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“For now, Trump is being unpredictable as predicted, setting oil prices up for headlines-oriented volatility ahead,” Sachdeva added.
Trump, during his speech on Thursday at the World Economic Forum in Davos, Switzerland, said he would demand that the Organization of the Petroleum Exporting Countries and its de facto leader, Saudi Arabia, bring down the cost of crude barrels.
He also said he would ask Riyadh to increase a US investment package to $1 trillion, up from $600 billion reported by the Saudi state news agency earlier in the day.
Trump declared a national energy emergency on Monday, rolling back environmental restrictions on energy infrastructure as part of a sweeping plan to maximise domestic oil and gas production.
On Wednesday, he vowed to hit the European Union with tariffs and impose 25% tariffs on Canada and Mexico, and said his administration was considering a 10% punitive duty on China.
As attention shifts to a possible February timeline for new tariffs set by Trump, caution will likely persist in the market as any new trade restrictions will carry negative implications for global growth, potentially weighing on oil demand prospects, said Yeap Jun Rong, market strategist at IG.
Oil prices fall as Trump urges lower oil costs, weighs tariff
Traders expect oil prices to range between $76.50 and $78 a barrel, Yeap added. While bullish catalysts like a significant drawdown in US crude stocks are providing temporary positive swings, an overall over-supplied global market and projections of ailing Chinese demand continue to weigh on crude futures, Phillip Nova’s Sachdeva said.
US crude inventories last week hit their lowest since March 2022, according to the US Energy Information Administration.
The EIA report, issued a day late because of a US holiday on Monday, said crude stockpiles fell by 1 million barrels to 411.7 million barrels in the week to Jan. 17, a ninth consecutive weekly decline.
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