Oil Holds Weekly Gain as Trump Calls for Low Prices to End War
(Bloomberg) -- Oil held a second weekly gain as renewed calls by US President Donald Trump for lower prices to pressure Moscow to end the war in Ukraine weighed against renewed attacks on Russian energy infrastructure.
Brent traded above $67 a barrel after losing 0.8% in the previous session, while West Texas Intermediate was below $64. Trump said the conflict would end “if the price of oil comes down,” a sign of his preferred strategy to halt the flow of petrodollars that fund Russia’s war effort. He also repeated calls for countries to stop buying fuel from the OPEC+ member.
Oil’s modest weekly gain has failed to jolt it out of the tight range it’s traded in since early August, with prices buffeted by rising geopolitical risks and bearish fundamentals. A faster-than-expected output reversal by the Organization of the Petroleum Exporting Countries and its allies has led the International Energy Agency to predict a record surplus next year.
While Trump’s public pressure adds a “political dimension that markets cannot ignore,” he has little actual influence on how producers manage prices or supplies, said Priyanka Sachdeva, a senior market analyst for brokerage Phillip Nova Pte in Singapore.
“Geopolitical risks — such as attacks on Russian energy infrastructure — continue to support a risk premium, but not enough to override the weight of surplus concerns,” she said.
Ukraine struck two Russian oil refineries on Thursday as it steps up its campaign to hit Moscow’s biggest source of funds — leading to concerns further closures may threaten to tighten global markets. Russian refining runs have now dropped below 5 million barrels a day, the lowest since April 2022, according to an estimate from JPMorgan Chase & Co.
Investors will also be watching a call later on Friday between Trump and Chinese President Xi Jinping for a potential easing of trade tensions between the world’s two biggest economies. The two leaders are due to speak at 9 a.m. Washington time.
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