Former President Donald Trump has called on Saudi Arabia and other OPEC nations to take immediate action to reduce the cost of oil, warning that failure to do so could prolong the Russia-Ukraine war. Speaking via video at the World Economic Forum in Davos, Trump expressed surprise that OPEC had not already taken measures to lower oil prices, particularly ahead of the U.S. elections.
“You gotta bring down the oil price, that will end that war,” Trump stated, suggesting that high oil prices were indirectly sustaining Russia’s war efforts. His remarks came a day after a conversation with Saudi Crown Prince Mohammed bin Salman, during which the Saudi leader reportedly pledged up to $600 billion in investments in the U.S. over the next four years. However, this figure was absent from the official White House readout of the call. Despite their seemingly cordial exchange, Trump pressed for an even greater commitment, urging bin Salman to raise the investment to $1 trillion.
Market Reaction and Expert Opinions
Following Trump’s comments, global crude oil prices dipped by approximately 1%, reflecting market anticipation that OPEC might heed his demands. However, analysts remain skeptical about the effectiveness of such pressure, given the complex geopolitical and economic factors influencing oil production and pricing.
David Oxley, Chief Climate and Commodities Economist at Capital Economics, noted that Trump’s approach aligns with his long-standing push for lower gasoline prices. However, he cautioned that lower oil prices might not necessarily benefit U.S. domestic energy production. “Lower oil prices will certainly not incentivize U.S. oil producers to ‘drill, baby, drill’—particularly in high-cost regions like Alaska,” Oxley explained. He also highlighted that Saudi Arabia might not automatically comply with Trump’s request, as OPEC’s production policies are based on long-term strategic interests rather than immediate political pressures.
Trump’s Trade and Economic Agenda
Beyond energy policy, Trump used his Davos speech to reinforce his America-first economic agenda, emphasizing his commitment to boosting domestic manufacturing. He warned global corporations that they must produce their goods within the U.S. or face severe tariffs on imported products.
The reaction from business leaders in attendance was mixed. BBC reporter Oliver Smith noted that while some executives found the speech powerful and pragmatic, others were less enthusiastic. “A lot of it made sense. Common sense. He’s just looking for fair trade,” said one U.S. delegate. However, a Swiss executive was unimpressed, stating, “It’s nothing new, but it’s clear what he wants to do… I think it’s bad for the world.” These varied responses underscore the continued divide in global perspectives on Trump’s economic policies.
Monetary Policy and Energy Strategy
Trump also took aim at U.S. monetary policy, calling for an immediate reduction in interest rates, which he blamed for deepening fiscal deficits. He argued that the Biden administration’s economic policies had led to excessive government spending and overregulation, stifling growth. “Over the past four years, our government racked up $8 trillion in wasteful deficit spending and inflicted nation-wrecking energy restrictions,” he asserted.
Additionally, Trump reiterated his support for fossil fuels, advocating for increased coal production to meet the growing energy demands of artificial intelligence (AI) technology. “We need double the energy we currently have in the U.S. for AI to be as big as we want it to be,” he said, pledging to use emergency decrees to accelerate the construction of new power plants. In a characteristic remark, he defended coal as an indestructible energy source: “Nothing can destroy coal—not the weather, not a bomb, nothing.”
Trump’s remarks at Davos reflect his continued focus on energy dominance, economic nationalism, and an aggressive stance on trade. However, whether his demands on OPEC and global businesses will translate into tangible policy shifts remains to be seen.
