Oil slips as Trump repeats call for OPEC to reduce prices

Oil prices fell much than 1% connected Monday aft U.S. President Trump called connected OPEC to trim prices pursuing the announcement of wide-ranging measures to boost U.S. lipid and state output successful his archetypal week successful office.

Brent crude futures dropped 87 cents, oregon 1.11%, to $77.63 a tube by 0043 GMT aft settling up 21 cents connected Friday.

U.S. West Texas Intermediate crude was astatine $73.77 a barrel, down 89 cents, oregon 1.19%.

Trump connected Friday reiterated his telephone for the Organization of the Petroleum Exporting Countries to chopped lipid prices to wounded oil-rich Russia's finances and assistance bring an extremity to the warfare successful Ukraine.

"One mode to halt it rapidly is for OPEC to halt making truthful overmuch wealth and driblet the terms of lipid ... That warfare volition halt close away," Trump said.

Trump has besides threatened to deed Russia "and different participating countries" with taxes, tariffs and sanctions if a woody to extremity the warfare successful Ukraine is not struck soon.

Russian President Vladimir Putin said connected Friday that helium and Trump should conscionable to speech astir the Ukraine warfare and vigor prices.

However, OPEC and its allies including Russia has yet to respond to Trump's call, with OPEC+ delegates pointing to a program already successful spot to commencement raising lipid output from April.

Both benchmarks posted their archetypal diminution successful 5 weeks past week arsenic concerns eased astir sanctions connected Russia disrupting supplies.

Goldman Sachs analysts said they bash not expect a large deed to Russian accumulation arsenic higher freight rates person incentivized higher proviso of non-sanctioned ships to determination Russian lipid portion the deepening successful the discount connected the affected Russian ESPO people attracts price-sensitive buyers to support purchasing the oil.

"As the eventual extremity of sanctions is to trim Russian lipid revenues, we presume that Western policymakers volition prioritize maximizing discounts connected Russian barrels implicit reducing Russian volumes," the analysts said successful a note.

Still, JP Morgan analysts said immoderate hazard premium is justified fixed that astir 20% of the planetary Aframax fleet presently faces sanctions.

"The exertion of sanctions connected the Russian vigor assemblage arsenic leverage successful aboriginal negotiations could spell either way, indicating that a zero hazard premium is not appropriate," they added successful a note.

More commercialized disruption is expected aft Trump announced connected Sunday helium volition enforce sweeping retaliatory measures connected Colombia, including tariffs and sanctions, aft the state turned distant 2 U.S. subject craft with migrants being deported.

The U.S. is the largest purchaser of Colombia's seaborne crude exports astatine 183,000 barrels per time (bpd) successful 2024, oregon 41% of Colombia's total, information from analytics steadfast Kpler showed.

Data from Energy Information Administration showed the U.S. imported 228,000 barrels per time of crude and products from Colombia successful 2023.

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