Trump Pushes OPEC to Slash Oil Prices, Ties Energy Costs to Russia-Ukraine War
At the World Economic Forum in Davos on Thursday, President Donald Trump urged Saudi Arabia and other OPEC members to reduce oil prices, suggesting that lower energy costs could play a pivotal role in ending the ongoing Russia-Ukraine conflict.
“I’m surprised OPEC hasn’t already taken action to bring down oil prices,” Trump remarked, addressing a room of business leaders and policymakers. He argued that high oil revenues are bolstering Moscow’s war efforts.
“If we bring the price of oil down, that war could end. It’s as simple as that,” he said, underscoring the link between energy revenue and the conflict.
Trump’s comments came after a conversation with Saudi Crown Prince Mohammed bin Salman the previous day. According to Saudi state media, the crown prince pledged to invest up to $600 billion in the U.S. over the next four years. However, the White House statement following the call did not mention this figure.
Despite the promising dialogue, Trump pushed for more. “The Crown Prince is a fantastic guy, but I’m asking him to take it further—let’s round that up to $1 trillion,” Trump said, blending diplomacy with his signature negotiation style.
Crude oil prices dipped by 1% shortly after Trump’s remarks.
Expert Opinions and Global Reactions
David Oxley, Chief Climate and Commodities Economist at Capital Economics, said Trump’s push for lower oil prices aligns with his goal to ease gasoline costs domestically. However, Oxley cautioned that cheaper oil might discourage U.S. energy companies from increasing production, particularly in high-cost regions like Alaska.
“Saudi Arabia isn’t guaranteed to comply with Trump’s request,” Oxley noted, highlighting the complexity of global oil markets.
Trump’s video appearance at Davos marked his first international address since taking office earlier in the week. While his energy policies took center stage, his speech also covered trade and economic reforms.
Mixed Reactions to Tariff Threats
The president reiterated his commitment to reshoring manufacturing jobs, warning companies to produce goods in the U.S. or face steep tariffs. His remarks received mixed reactions from attendees.
Some delegates praised Trump’s straightforwardness. “It was a powerful speech—full of common sense,” said an American executive.
Others, like a Swiss business leader, were less enthusiastic. “It’s nothing new, but the message is clear. Personally, I think it’s bad for the global economy,” he said.
Criticism of Biden’s Economic Policies
Trump also criticized his predecessor, Joe Biden, blaming the previous administration for soaring deficits and what he called “economic chaos.” He pledged to reverse these trends, starting with a demand for lower interest rates.
“Over the last four years, we’ve seen $8 trillion in wasteful deficit spending,” Trump said. “We’re going to fix this and bring back economic stability.”
Energy Plans for the Future
The president also highlighted his vision for energy expansion, emphasizing the need for coal to support artificial intelligence infrastructure. “AI will require twice the energy we currently have,” he said, pledging to fast-track the construction of new power plants through emergency measures.
“Coal is indestructible—it can survive anything,” Trump added, underscoring his commitment to traditional energy sources.
Trump’s remarks in Davos signaled a bold start to his presidency, setting the stage for a contentious global dialogue on energy, trade, and economic policy.
