By Okafor Joseph Afam – January 28, 2025

Oil prices slid on Monday after U.S. President Donald Trump reiterated his demand for the Organization of the Petroleum Exporting Countries (OPEC) to cut prices, a move he claims would pressure Russia financially and help end the ongoing war in Ukraine.

In early trading, Brent crude futures fell by 53 cents, or 0.68%, settling at $77.97 a barrel by 0430 GMT, following a minor gain of 21 cents on Friday. Similarly, U.S. West Texas Intermediate (WTI) crude dropped 50 cents, or 0.67%, to $74.16 a barrel.

The comments come after Trump rolled out sweeping measures in his first week in office to bolster U.S. oil and gas production, further intensifying competition in the global energy market.

“One way to stop it [the Ukraine war] quickly is for OPEC to stop making so much money and drop the price of oil… That war will stop right away,” Trump remarked on Friday, reiterating his stance against high oil prices. He further threatened Russia and other OPEC+ participants with potential tariffs, taxes, and sanctions if they fail to strike a deal to end the conflict in Ukraine.

Russian President Vladimir Putin, in response, suggested a potential meeting with Trump to discuss both the Ukraine crisis and energy prices. Market analysts suggest these developments are creating significant volatility in oil markets.

“They are positioning for negotiations,” said John Driscoll of Singapore-based consultancy JTD Energy. He noted that Trump’s policies to expand U.S. output could skew the market toward lower prices, as the U.S. seeks to capture a larger share of global oil demand.

“He’s going to want to muscle into some of the OPEC market share, so in that sense, he’s kind of a competitor,” Driscoll added.

Despite Trump’s aggressive stance, OPEC and its allies, including Russia, have yet to formally respond. OPEC+ officials have pointed to an existing plan to gradually increase oil output starting in April, signaling no immediate change in their strategy.

Last week, both Brent and WTI benchmarks saw their first weekly decline in five weeks as fears over sanctions disrupting Russian oil supplies began to ease.

Goldman Sachs analysts noted that Russia’s oil production is unlikely to face significant disruption. Rising freight costs have incentivized alternative shipping arrangements for Russian oil, while steeper discounts on Russia’s ESPO crude grade are attracting cost-conscious buyers.

“As the ultimate goal of sanctions is to reduce Russian oil revenues, we assume that Western policymakers will prioritize maximizing discounts on Russian barrels over reducing Russian volumes,” Goldman Sachs analysts stated in a note.

The interplay of geopolitics and energy economics continues to shape global oil markets, with volatility likely to persist as the U.S. and OPEC+ jostle for influence.