SINGAPORE: Oil prices slipped on Monday after US President Trump called on OPEC to reduce prices following the announcement of wide-ranging measures to boost US oil and gas output in his first week in office.

Brent crude futures dropped 53 cents, or 0.68 percent, to $77.97 a barrel by 7:30 a.m. Saudi time after settling up 21 cents on Friday.

US West Texas Intermediate crude was at $74.16 a barrel, down 50 cents, or 0.67 percent.

Trump on Friday reiterated his call for the Organization of the Petroleum Exporting Countries to cut oil prices to hurt oil-rich Russia’s finances and help bring an end to the war in Ukraine.

“One way to stop it quickly is for OPEC to stop making so much money and drop the price of oil ... That war will stop right away,” Trump said.

Trump has also threatened to hit Russia “and other participating countries” with taxes, tariffs and sanctions if a deal to end the war in Ukraine is not struck soon.

Russian President Vladimir Putin said on Friday that he and Trump should meet to talk about the Ukraine war and energy prices.

“They are positioning for negotiations,” said John Driscoll of Singapore-based consultancy JTD Energy, adding that this creates volatility in oil markets.

He added that oil markets are probably skewed a little bit to the downside with Trump’s policies aimed at boosting US output as he seeks to secure overseas markets for US crude.

“He’s going to want to muscle into some of the OPEC market share so in that sense he’s kind of a competitor,” Driscoll said.

However, OPEC and its allies including Russia have yet to react to Trump’s call, with OPEC+ delegates pointing to a plan already in place to start raising oil output from April.

Both benchmarks posted their first decline in five weeks last week as concerns eased about sanctions on Russia disrupting supplies.

Goldman Sachs analysts said they do not expect a big hit to Russian production as higher freight rates have incentivized higher supply of non-sanctioned ships to move Russian oil while the deepening in the discount on the affected Russian ESPO grade attracts price-sensitive buyers to keep purchasing the oil.

“As the ultimate goal of sanctions is to reduce Russian oil revenues, we assume that Western policymakers will prioritize maximizing discounts on Russian barrels over reducing Russian volumes,” the analysts said in a note.

Still, JP Morgan analysts said some risk premium is justified given that nearly 20 percent of the global Aframax fleet currently faces sanctions.

“The application of sanctions on the Russian energy sector as leverage in future negotiations could go either way, indicating that a zero risk premium is not appropriate,” they added in a note.

On another front, Washington swiftly reversed plans to impose sanctions and tariffs on Colombia, after the South American nation agreed to accept deported migrants from the US, the White House said in a statement late on Sunday.

Sanctions could have disrupted oil supply, as Colombia last year sent about 41 percent of its seaborne crude exports to the US, according to data from analytics firm Kpler.

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 32.12 points, or 0.26 percent, to close at 12,386.16.

The total trading turnover on the benchmark index reached SR5.11 billion ($1.36 billion), with 161 stocks advancing and 69 retreating.

The Kingdom’s parallel market, Nomu, also saw a modest gain, rising 49.70 points, or 0.16 percent, to close at 30,896.29, as 49 stocks advanced and 42 declined.

The MSCI Tadawul Index closed up by 2.01 points, or 0.13 percent, finishing at 1,545.39.

Kingdom Holding Co. emerged as the day’s top performer, with its share price surging 9.80 percent to SR10.20. Other notable performers included Al-Baha Investment and Development Co., which rose 9.30 percent to SR0.47, and Saudi Fisheries Co., whose share price jumped 7.84 percent to SR24.28.

On the downside, Al-Jouf Cement Co. recorded the largest drop, falling 3.57 percent to SR12.44. Arabian Pipes Co. also saw its stock decline by 2.50 percent, closing at SR13.26, while Rasan Information Technology Co. dropped 1.94 percent to SR90.80.

On the announcements front, Al-Baha Investment and Development Co. announced its annual financial results for the period ending Dec. 31. The company reported a net profit of SR8.37 million for 2024, a 69.48 percent increase compared to 2023. The growth was primarily driven by a 13 percent rise in revenues, a 98 percent drop in zakat provisions, a 39 percent reduction in financing costs, and a decline of SR1.18 million in investment properties.

Al-Moammar Information Systems Co. has signed a SR58.6 million contract with the Saudi Authority for Data and Artificial Intelligence to enhance the AI network through software and services.

According to a bourse filing, the 36-month deal is expected to generate positive financial impacts starting in Q1 2025. The stock closed at SR160.40, up 0.51 percent.

Al-Sagr Cooperative Insurance Co. received an Insurer Financial Strength Rating of “BBB” and a National IFS Rating of “A+” with a stable outlook from Fitch Ratings.

The ratings reflect Al-Sagr’s strong capitalization, solid financial performance, and well-diversified insurance portfolio, despite its moderate operating scale within the Saudi insurance market. Al-Sagr’s stock closed at SR18.10, up 3.20 percent.