Oil market faces first weekly decline of 2025 amid US pressure on OPEC
Speaking at the World Economic Forum in Davos, Switzerland, the US President announced plans to urge Saudi Arabia and OPEC to bring down oil prices. While this rhetoric is expected to resonate favourably with consumers and businesses grappling with inflation
The oil market is on track for its first weekly decline of the year as the US pressures Saudi Arabia and OPEC to lower crude prices. International benchmarks Brent and WTI closed Thursday, January 23, on a downward trend, reflecting growing uncertainties in the energy sector.
Brent crude dropped by 71 cents, or 0.9%, and settled at $78.29/barrel.
WTI slid by 82 cents, or 1.09%, and closed at $74.62/barrel.
Speaking at the World Economic Forum in Davos, Switzerland, the US President announced plans to urge Saudi Arabia and OPEC to bring down oil prices. While this rhetoric is expected to resonate favourably with consumers and businesses grappling with inflation, it has raised eyebrows among the US oil industry and global producers, who view it as a potential disruption to supply dynamics.
Adding to the complexity, the Energy Information Administration (EIA) reported on Thursday that US crude inventories have declined for the ninth consecutive week. This drawdown has likely cushioned the market from a sharper price drop but underscores ongoing concerns over supply tightness.
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Written by: Muhammad Hafiz