Washington, February 25: A 'Trump effect' on oil prices was witnessed on Monday as a tweet by the US President reprimanding the OPEC led to a 2 per cent drop in the crude rates. The prices sunk by around 2 per cent, bringing brent crude to $64.96, whereas, WTI crude plunged to $55.26.
Market analysts said the fresh reduction in prices - coming after nearly two months of OPEC's production-cut measures to consolidate the oil rates - was a direct result of President Donald Trump marking his dissent against the Organization of the Petroleum Exporting Countries. PM Modi 'Vocal' About India's Concern, OPEC to Consider His Views Seriously: Saudi Oil Minister.
The oil producing nations were asked by Trump to "relax", and not to add further stress on a struggling global economy by increasing the fuel prices.
"Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike - fragile! (sic)," the President tweeted.
Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike - fragile!
— Donald J. Trump (@realDonaldTrump) February 25, 2019
The 20 member nations of OPEC, who met in Vienna in December last year, had marked concerns over continuing to supply oil at current market rate -- which they consider below par.
The group is scheduled to reconvene in mid-April, to finalise their policies for the next six months of 2019.
Despite the chorus growing among OPEC countries to increase the oil prices -- to boost their earnings -- the group's kingpin Saudi Arabia in a delicate position. Riyadh is keen not to incur Trump's wrath as relations between the two countries become increasingly complicated in the wake of the murder of opposition journalist Jamal Khashoggi.