President Donald Trump expressed his intention to urge Saudi Arabia and other OPEC nations to reduce oil prices and reiterated his readiness to implement tariffs. During a speech at the World Economic Forum in Davos, he remarked how surprised he was that OPEC had not acted before the elections to lower oil prices.
He suggested that the current oil prices were fueling conflicts like the one between Russia and Ukraine, stating that by lowering oil prices, such wars could potentially be ended. Despite his positive remarks about the Crown Prince, Trump mentioned that he would be discussing a target figure of around $1 trillion with him.
Following Trump's comments, crude oil prices dropped by 1%. David Oxley from Capital Economics noted that Trump's focus on lower gas prices aligns with his strategy of using energy as leverage against Russia to resolve the Ukraine conflict. However, he pointed out that lower oil prices might not motivate US oil producers to increase drilling activities, especially in areas like high-cost Alaska.
While Saudi Arabia might not necessarily comply with Trump's request to boost oil production, the president used this opportunity to advocate for manufacturing in the US or facing significant tariffs on imports. He also emphasized the need for lower interest rates to address deficits that, in his view, had led to economic challenges during the previous administration.
In his address, Trump promoted the use of "good, clean, coal" for powering data centers essential for artificial intelligence, highlighting his commitment to expanding energy production. He emphasized his determination to accelerate the construction of new power plants through emergency decrees to meet the increased energy demand for AI technologies.