Oil Prices Decline for the First Time in 2025 Under Political Pressure
Oil prices recorded their first weekly decline this year,
influenced by statements from U.S. President Donald Trump urging a reduction in costs,
along with Russian President Vladimir Putin’s willingness to negotiate on Ukraine and oil prices.
Content
- Putin
- America
- Oil
Putin
Putin Affirms Readiness to Negotiate on Ukraine and Oil Prices with Trump
Oil prices witnessed their first weekly decline in 2025 following statements
from U.S. President Donald Trump hinting at trade wars and urging the “OPEC+” alliance to reduce oil costs.
West Texas Intermediate (WTI) crude fell to close above $74 per barrel after a volatile session.
This decline coincided with statements from Russian President Vladimir Putin,
who expressed his readiness to negotiate with Trump on the Ukraine crisis and oil prices.
Earlier this week, Trump threatened to impose additional sanctions on Russia if no agreement
was reached to end the prolonged conflict in Ukraine.
America
Impact of U.S. Sanctions on Global Oil Markets
Global markets have been grappling with supply shortages due to U.S. sanctions previously imposed on Russian oil,
which aimed to strengthen Ukraine’s position in political negotiations.
However, easing these sanctions could increase supplies for Asian markets,
which are actively seeking alternatives to meet their energy needs.
Oil
Oil Markets Under Pressure from Trump’s Statements
Since the beginning of his new term, Trump’s statements have caused significant volatility in oil markets.
He started the first week by threatening to impose tariffs on countries like Canada,
Mexico, and China, followed by urging the “OPEC+” alliance to lower oil prices.
Nadia Martin Wiggen, managing director at Svelland Capital,
explained that Trump aims to reduce gasoline prices for consumers while ensuring continued domestic production.
This puts him in a complex position between supporting consumers and producers.
Despite a 4.1% decline in New York futures this week, prices remain higher compared to the beginning of the year,
driven by cold weather in the Northern Hemisphere and Russian sanctions.
Markets have also shown relative stability after the sharp fluctuations caused by these sanctions.
One of Trump’s recent steps was declaring a national energy emergency to boost domestic production.
He also pledged to replenish U.S. oil reserves to their maximum capacity.
Expected Impact: Will Oil Prices Continue to Decline?
With continued U.S. pressure and calls to lower prices,
attention is focused on how “OPEC+” will respond to these demands and the potential impact of negotiations
between Putin and Trump on the global oil market.
Oil Prices Decline for the First Time in 2025 Under Political Pressure