Trump Delivers Virtual Speech at Davos
"If Oil Prices Fall, the Russia-Ukraine War Will End Immediately"
Requests China to "Help End the War"
U.S. President Donald Trump announced that he will demand Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to lower oil prices in order to end the war in Ukraine. Following Trump's remarks, the rising international oil prices reversed to a downward trend.
On the 23rd (local time), President Trump said in a virtual speech at the World Economic Forum (WEF) held in Davos, Switzerland, "If oil prices fall, the Russia-Ukraine war will end immediately."
He added, "Right now, prices are high enough for the war to continue," and stated, "I will demand Saudi Arabia and OPEC to lower oil prices." This is intended to pressure Middle Eastern oil-producing countries to increase production and tighten the financial lifeline of Russia, which depends on oil and gas exports for half of its fiscal revenue.
President Trump also urged Russia to reach a ceasefire agreement the day before and hinted at additional sanctions. He warned, "Stop this ridiculous war," and said, "If we do not trade, we will have no choice but to impose high taxes, tariffs, and sanctions on everything Russia sells to the U.S. and other participating countries."
Having taken office on the 20th, President Trump is expected to increase pressure on Russia by targeting the energy sector as announced in his speech.
The second Trump administration views former President Joe Biden's sanctions on Russia as insufficiently strong. Scott Bessent, nominee for Treasury Secretary, stated during last week's congressional confirmation process that Biden administration's sanctions on Russia are "excessively insufficient" and expressed "100% support for raising sanctions on major Russian oil companies to a level that would bring Russia to the negotiating table." Earlier, former President Biden introduced a price cap on Russian crude oil, but it was criticized as ineffective because Russia circumvented the sanctions.
President Trump also called on China to play a role in ending the war in Ukraine. He emphasized, "China has enormous influence over the war situation in Ukraine, and we will cooperate with China," adding, "I hope China can help end the war between Russia and Ukraine."
Following President Trump's speech in Davos, international oil prices reversed to a decline. As of 3:16 p.m. Eastern Time that day, West Texas Intermediate (WTI) crude oil was trading at $74.47 per barrel, down $0.97 (1.29%) from the previous day, and Brent crude, the global benchmark, was at $78.13 per barrel, down $0.87 (1.1%) from the previous day.
President Trump also hinted at expanding fossil fuel production. He stated that the U.S. holds the largest reserves of oil and gas on Earth and said, "We will unleash 'liquid gold' in the United States." He confidently added, "This will lower the prices of all goods and services and make the U.S. the absolute leader in manufacturing."
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