Trump Urges Energy Department To ‘Drill Baby Drill’, Warns High Oil Prices Benefit US Enemies

U.S. President Donald Trump on Monday took to Truth Social to call for an immediate ramp-up in U.S. oil production, urging the Department of Energy to act swiftly and warning that elevated energy prices play into the hands of America’s adversaries.

Trump’s posts come amid renewed geopolitical tensions in the Middle East between Iran and Israel, as well as continued market volatility in U.S. crude oil prices. West Texas Intermediate (WTI) Crude Oil futures fell more than 1.7% following the posts and Brent Crude Oil futures dipped 0.3%. Both were trading in the green before the bell. 

The United States Oil Fund (USO) was down 0.5% after the opening bell, after surging at least as much as 1% in pre-market trade. Shares of Exxon Mobil (XOM) and Occidental Petroleum Corp. (OXY) also pared their gains. While they both surged around 2% in pre-market trade, XOM’s stock was just 0.07% in the green, and OXY’s stock was up 0.4% after the regular trading session kicked off, 

“EVERYONE, KEEP OIL PRICES DOWN. I'M WATCHING! YOU'RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON'T DO IT!” Trump wrote on his social media platform. 

This is not the first time that Trump has expressed his desire for low oil prices. According to him, having lower gasoline and oil prices can help the country tackle inflation. He has even asserted that lower oil prices will bring an end to the war in Ukraine. 

The President followed up with a separate post calling for energy independence, which said, “To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!”

Trump has long been an advocate for domestic drilling as a way to reduce reliance on foreign oil and enhance U.S. energy security. He argues that the U.S. can create jobs, spur investment, and general government revenue from leases and royalties. 

Analysts are unable to predict where crude oil prices will go next. While some believe that Iran’s threat to close off the Strait of Hormuz may not have a tangible impact, others believe it could be the first lynchpin in the rapid climb of oil prices as the Iran-Israel conflict escalates. 

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Read also: Crude Oil Prices Climb After Iran Threatens US, Blames ‘Gambler’ Trump For Entering Conflict With Israel