West Texas Intermediate (WTI) crude oil prices have experienced a decline, trading at approximately $73.90 per barrel during Monday’s Asian market hours. This downward trend comes after US President Donald Trump urged OPEC+ to lower oil prices in a bid to weaken Russia’s financial position and contribute to ending the ongoing conflict in Ukraine. The pressure from the White House on OPEC+ follows Trump’s comments highlighting the potential impact of reduced oil prices on the war.
The call for price reductions by Trump, articulated recently, emphasizes the financial strain on OPEC, particularly targeting Russia’s revenue from oil exports. Despite this, OPEC+ members have not issued a formal response, although there are plans to increase oil output in the coming months, with an announcement expected in April.
Tensions escalated further as President Trump suggested that he would implement potentially severe tariffs and sanctions on Russia and other countries involved if an agreement to resolve the war in Ukraine is not achieved swiftly. Russian President Vladimir Putin has proposed a dialogue with Trump to discuss energy prices and the conflict, suggesting a willingness to engage on these critical issues.
Adding to the complexity of international relations, Trump announced a significant tariff on Colombian goods, starting at 25% and potentially rising to 50%. This development was prompted by Colombia’s refusal to accommodate US military planes carrying deported migrants. In retaliation, Colombian officials have hinted at imposing their tariffs on US imports, which could greatly impact trade between the two nations. Currently, the US is a major buyer of Colombian crude, with projections indicating the purchase of 183,000 barrels per day in 2024, accounting for a significant portion of Colombia’s overall exports.
In a recent announcement, the White House confirmed that Colombia has accepted all of Trump’s terms, including the unconditional acceptance of deported individuals from the US. This agreement marks a notable shift in diplomatic relations between the two countries.
