27 January 2025

Written by Florence Tan

SENSAVER (Reuters) – Oil prices fell more than one percent on Monday after US President Trump OPEC called for cutting prices in the wake of the announcement of large -scale measures to enhance US oil and gas production in his first week in office.

Futures fell 87 cents, 1.11 percent, to $ 77.63 a barrel by 0043 GMT, after 21 cents rose on Friday.

The US West Texas Intermediate crude recorded $ 73.77 a barrel, a decrease of 89 cents or 1.19 %.

On Friday, Trump reiterated his call to the Organization of Petroleum Exporting Countries to reduce oil prices to harm the financial finance of Russia rich in oil and help end the war in Ukraine.

“One way to stop it quickly is that OPEC stops making a lot of money and lowering oil prices … that war will stop immediately,” Trump said.

Trump also threatened Russia and “other participating countries” with taxes, customs fees and sanctions if an agreement was not reached to end the war in Ukraine soon.

Russian President Vladimir Putin said today, Friday, that he should meet with Trump to talk about the war in Ukraine and energy prices.

However, OPEC and its allies, including Russia, have yet to respond to Trump's invitation, as OPEC + delegates referred to a plan already placed to start increasing oil production from April.

Both the two records recorded their first five -week decrease last week, with concerns about the sanctions imposed on Russia that disrupt the supplies.

Goldman Sachs analysts said that they do not expect a major blow to Russian production, as it motivated the high shipping prices to increase the supply of ships that are not subject to sanctions to transport Russian oil, while deepening the opponent on the affected Russian Espo raw attracts the sensitive to the price to keep it. Buying oil.

“Since the ultimate goal of the sanctions is to reduce Russian oil revenues, we assume that Western policy makers will give priority to maximizing discounts on Russian barrels to reduce Russian quantities,” analysts said in a note.

However, JP Morgan analysts said that some of the risk allowance has justified it, given that approximately 20 % of the Aphrafax global fleet currently face sanctions.

They added in a note that “the application of sanctions to the Russian energy sector as a means of pressure in future negotiations can go in any of the two directions, indicating that the zero risk bonus is not appropriate.”

More commercial turmoil is expected after Trump announced on Sunday that he would impose comprehensive reprisals on Colombia, including customs duties and sanctions, after the country rejected two US military planes deporting immigrants.

© Reuters. Photo of the file: a crude oil tanker sailing in Nakhodka Bay near the coastal city

Data from the Kepler Analysis Company showed that the United States is the largest buyer of Colombia exports of crude oil transported by 183 thousand barrels per day in 2024, or 41% of Colombia's total.

Data from Energy Information Administration showed that the United States imported 228 thousand barrels per day of crude oil and products from Colombia in 2023.

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