With US President Donald Trump pressuring OPEC and escalating trade tensions with key partners like Colombia, oil prices remain under pressure. Crude markets opened lower after Trump reiterated his call for the Organisation of the Petroleum Exporting Countries (OPEC) to cut oil prices. Brent crude futures fell 1.11 percent to $77.63 a barrel by 0043 GMT, while US West Texas Intermediate (WTI) crude dropped 1.19 percent to $73.77 a barrel, according to Reuters.
Trump's call to OPEC to cut oil prices
Trump has repeatedly urged OPEC to reduce prices, framing it as a strategy to hurt Russia's finances and hasten an end to the Ukraine war. "One way to stop it quickly is for OPEC to stop making so much money and drop the price of oil ... That war will stop right away," Trump said on Friday. He also warned of potential sanctions and tariffs against Russia and other nations if OPEC fails to act.
While OPEC+ has yet to respond to Trump's remarks, delegates have pointed to their existing plan to raise oil output from April. Goldman Sachs analysts suggested that despite sanctions on Russian oil, production levels are unlikely to see a major drop, with discounts on Russian oil continuing to attract price-sensitive buyers. However, JP Morgan analysts warned that sanctions-related risks persist, particularly as nearly 20 percent of the global Aframax fleet faces restrictions.
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Trump's fresh tariff threat adds pressure
Adding to the downward pressure on oil prices, Trump’s latest tariff threats targeted Colombia, the fourth-largest supplier of overseas oil to the US. After a diplomatic row over Colombia’s refusal to allow US planes carrying deported migrants to land, Trump announced sweeping retaliatory measures, including a proposed 25 percent tariff on Colombian goods, escalating to 50 percent within a week.
The US is the largest buyer of Colombia's seaborne crude, importing 183,000 barrels per day (bpd) in 2024, accounting for 41 percent of Colombia's total crude exports, according to Reuters data from analytics firm Kpler.
Trump's Columbia threat on pause, but oil prices remain volatile
Bloomberg reported later in the day that the White House paused sanctions against Colombia after the South American nation agreed to Trump’s terms, including unrestricted acceptance of deportees. Despite this temporary resolution, crude oil prices remained volatile, with Brent trading at $78.01 a barrel and WTI above $74 during the morning session in Singapore.
As Trump’s aggressive trade and energy policies continue to reshape global supply chains, oil markets are adjusting to heightened uncertainties, from sanctions on Russian crude to new trade tensions with key US partners. These factors, coupled with OPEC’s cautious approach, are keeping downward pressure on crude oil prices for now.
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