Oil prices declined on Thursday as President Donald Trump reaffirmed his commitment to increasing U.S. oil production, unsettling traders after a sharp rise in U.S. crude inventories. Brent crude fell $0.32 (0.4%), settling at $74.29 per barrel, while WTI dropped $0.42 (0.6%) to $70.61 per barrel. Trump’s push to boost production aims to lower energy costs and curb inflation, but analysts remain skeptical about whether U.S. producers will expand drilling efforts.
Earlier in the session, prices had moved higher after Saudi Arabia raised crude prices for Asian buyers and new U.S. sanctions targeted individuals and entities linked to Iranian oil shipments to China. However, the market reversed course following Trump’s comments. Additionally, U.S. crude inventories surged by 8.7 million barrels, significantly exceeding the expected 2-million-barrel build, adding further downward pressure on prices.
Market volatility is expected to persist, with Trump’s fluctuating policies on tariffs and sanctions continuing to influence prices. While he recently paused steep tariffs on Mexico and Canada, new duties on Chinese imports took effect Tuesday. Meanwhile, the administration reintroduced “maximum pressure” sanctions on Iran, though Trump has indicated openness to future negotiations. Analysts predict that Trump’s statements will remain a key driver of oil market fluctuations, with Brent crude down over 8% and WTI down over 7% since his inauguration on January 20.