Oil fell 1% on Thursday after US President Donald Trump urged Saudi Arabia and OPEC to lower their costs during his speech at the World Economic Forum.
Uncertainty about how Trump's proposed tariffs and energy policies will affect global economic growth and energy demand also weighed on prices.
Brent crude settled 71 cents (0.9%) lower at $78.29 a barrel and West Texas Intermediate (WTI) crude fell 82 cents (1.09%) to $74.62.
Prices fell after Trump announced he would ask Saudi Arabia and OPEC to lower oil costs during his speech at the World Economic Forum in Davos, Switzerland.
According to Clay Seigle, senior energy security researcher at the Center for Strategic and International Studies, Trump's call for lower oil prices will naturally be welcomed by the market but received with caution by the US oil industry and global suppliers.
The energy industry has called for increased investment in global oil and gas projects because implementing lower oil prices could raise concerns about the economics of new projects.
The Energy Information Administration (EIA) reported that U.S. crude oil inventories fell to their lowest level since March 2022 last week, despite a slowdown in refining activity.
Meanwhile, Trump said he would add new tariffs to his threat of sanctions on Russia if it did not make a deal to end its war in Ukraine.
He also vowed to punish the European Union with tariffs and impose 25% tariffs on Canada and Mexico. On China, Trump said his administration was discussing a 10% punitive duty because fentanyl was shipped from there to the U.S.
