Washington (awp/afp) – Oil prices ended higher on Friday, after a turbulent week, with operators doubting that Donald Trump will manage to bend the Organization of the Petroleum Exporting Countries (OPEC) to increase its production.
The price of a barrel of Brent from the North Sea, for delivery in March, rose 0.27% to $78.50.
Its American equivalent, a barrel of West Texas Intermediate, for delivery the same month, remained almost stable, gaining 0.05% to $74.66.
“This market has been somewhat shaken by the headlines,” summarized John Kilduff of Again Capital to AFP.
On Thursday, prices fell after Donald Trump called on Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to lower crude prices by increasing their production, with the aim of lowering the cost of oil. energy for American consumers.
“I will ask Saudi Arabia and OPEC to lower the cost of oil,” said the American president during an online speech to an audience of big bosses at the World Economic Forum in Davos , in Switzerland.
OPEC and its allies (OPEC+) have a great influence on the price of oil. Its members agree to adjust their production in order to maintain their profits in the long term.
Since the end of 2022, it has been organizing a strategy to reduce supply and currently has an unexploited production capacity of nearly six million barrels per day.
-“If the Saudis or OPEC+ decided to increase production, this would have a (downward) effect on energy prices,” commented Mr. Kilduff, hence the movement the day before.
The announcement effect fades on Friday because it is “not unusual for Trump to call on OPEC+ to produce more oil”, Jorge Leon of Rystad Energy told AFP.
“He had already asked Saudi Arabia to increase its production during his first mandate,” continues the analyst.
According to Mr. Kilduff, “the Saudis (…) need $100 oil to do what they want, to put Saudi Arabia first.”
In addition, American producers also need high prices to respond to the American president’s demand to “drill at all costs”, without which these new drillings will not be profitable.
“Maintaining peace in the Middle East” could also affect the price of black gold, concluded Mr. Kilduff.
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