US President Donald Trump said that the decline in oil prices is increasing pressure on russia and increasing the likelihood of a peace agreement to end the war in Ukraine.
This is reported by Economic Pravda with reference to Bloomberg.
"Now that oil prices have fallen, we have a good moment for agreements. Russia wants to make an agreement, Ukraine wants to make an agreement. If I were not President, no one would be making an agreement," Trump said.
US West Texas Intermediate crude was trading at USD 57.21 per barrel - about 27% less than when Trump came to power.
The report said that the decision of OPEC countries over the weekend to increase oil production, despite the expected decline in demand due to the US trade war, also contributed to the fall in prices.
Trump has repeatedly called on OPEC to increase production and lower prices, arguing that doing so would deprive russia of revenue and help end the war.
The administration has also threatened new sanctions and other pressure measures while peace talks have been slow to move forward.
Trump’s comments came a week before he is scheduled to travel to Saudi Arabia, Qatar and the United Arab Emirates.
Meanwhile, the EU is working on a proposal to ban russian gas imports by the end of 2027.
While Trump is cheering the drop in prices as a way to pressure russia, it is creating problems for some U.S. oil producers.
Despite promises to “drill more” and increase U.S. production, low prices could make some wells unprofitable.
As Ukrainian News Agency earlier reported, oil prices fell by more than USD 2 per barrel on May 5 as OPEC+ intends to accelerate oil production growth, raising concerns about increased supply in the market.
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