US forecasts oil prices to drop under Trump administration
Illustrative photo: US Energy Secretary forecasts decline in oil prices (Getty Images)
US Energy Secretary Chris Wright stated that he expects lower average oil and energy prices in the coming years under a Trump administration, according to Bloomberg.
The remarks came during a press briefing in Riyadh, Saudi Arabia, as part of Wright’s Middle East tour.
“Under President Trump’s leadership in the next four years, we’ll almost certainly see lower average energy prices than we saw in the last four years of the previous administration,” Wright said at a briefing with reporters in Riyadh. He declined to comment on specific price targets.
“I can’t comment about where oil prices are today or where they’re going, but if you reduce barriers to investment, reduce barriers to build infrastructure, you can lower the supply costs of energy,” Wright said.
Wright met with Saudi Energy Minister Prince Abdulaziz bin Salman during his visit to Riyadh, which was part of a broader regional trip.
Oil prices tumble amid production surge and tariff shock
The comments come as global oil prices recently dipped below $65 per barrel - marking the lowest level since the COVID-19 pandemic. The drop followed announcements by Saudi Arabia and other oil-producing nations to increase output, compounded by market reactions to Trump’s new tariffs.
This price plunge threatens Saudi Arabia’s ability to fund its ambitious economic transformation plans, as oil needs to stay significantly higher for the kingdom to balance its budget.
Energy tensions between Washington and Riyadh
During the Biden presidency, the US and Saudi Arabia frequently clashed over oil production. Riyadh’s refusal to increase output amid soaring inflation in the West strained diplomatic relations. Between 2017 and 2021, the average price of oil was approximately $83 per barrel, Bloomberg notes.
US–Saudi nuclear deal in works
Wright also revealed that the US and Saudi Arabia are progressing toward a preliminary agreement on civil nuclear energy cooperation. The deal would include strict non-proliferation commitments and technology safeguards.
The agreement, known as a Section 123 deal, would ensure that Saudi Arabia adheres to limits on nuclear weapons development while allowing peaceful energy use. Wright emphasized Washington’s concern about preventing Saudi collaboration with China on its nuclear ambitions.
Oil’s sharpest fall since 2022
On April 3, oil prices suffered the steepest percentage drop since 2022, shortly after OPEC+ unexpectedly agreed to ramp up production. The decision came just one day after Trump announced sweeping new import tariffs, further rattling global markets.
