Oil prices declined for the fifth consecutive session on Friday, falling to two-week lows after United States President Donald Trump called on OPEC to reduce crude prices and ramp up production.
By 2:25 pm AEDT (3:25 am GMT) Brent crude futures were down $0.08 or 0.1% to US$77.95 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped $0.08 or 0.1% to US$74.31 per barrel.
During his speech at the World Economic Forum in Davos, Switzerland, Trump urged the Organisation of the Petroleum Exporting Countries (OPEC) lower crude costs.
"You've got to bring down the oil price… right now, the price is high enough that that war will continue," Trump said.
He also stated he would ask Riyadh to increase its U.S. investment package to US$1 trillion, up from the $600 billion previously reported by the Saudi state news agency.
ANZ analysts said in a note to clients: “The comments reversed earlier gains in the day on signs that new U.S. sanctions on Russia are starting to tighten the oil market. Oil refiners in Asia are cutting run rates amid a push back from certain countries to accept sanctioned vessels.”
Shrinking U.S. crude inventories also helped prevent a steeper decline in prices. According to the U.S. Energy Information Administration (EIA), crude stockpiles fell by one million barrels to 411.7 million barrels in the week ending January 17, marking the lowest levels since March 2022 and the ninth consecutive weekly drop.
