Saudi Arabia’s Energy Minister and other OPEC+ representatives met for talks following former US President Donald Trump’s call for lower oil prices. Trump said that lower oil prices could bring an end to the current conflict in Ukraine.
“I’ll ask Saudi Arabia and OPEC to cut oil prices. “They should have done it long ago,” Trump stated. He said that rising oil prices allow Russia to fund its military operations, extending the conflict. “If oil prices fall, the issues will cease immediately. They bear some responsibility for what is going on.”
Trump also wanted global interest rates to fall, emphasising that a drop in oil prices will result in cheaper borrowing costs worldwide.
Despite Trump’s request, sources indicate that OPEC+ is unlikely to reduce prices. The alliance, founded in 2016, includes major oil producers such as Russia, Saudi Arabia, and Iraq. OPEC members own more than 79% of the world’s proven crude oil reserves and control global supply.
Historically, OPEC decisions have shaped global economies. In 1973, an oil embargo led to serious fuel shortages in the US. Today, any increase in OPEC+ output could provide a threat to American oil companies, particularly shale producers, whose costs are higher than those of OPEC members.
