WTI tumbles to near $74.00 as Trump urges OPEC to cut oil cost

• WTI price declines to $74.10 in Friday's early Asian session. 
• Trump said he will ask OPEC to lower oil prices.
• US crude oil inventories dropped by 1.017 million barrels last week, according to the EIA. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $74.10 on Friday. The WTI price extends its downside after US President Donald Trump urged Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to cut their prices.

Uncertainty over how Trump's proposed tariffs and energy policies could weigh on the WTI price. Trump said on Thursday that he will ask Saudi Arabia and OPEC to lower the price of oil. "I'm also going to ask Saudi Arabia and OPEC to bring down the cost of oil, said Trump durin g his speech at the World Economic Forum in Davos, Switzerland.

Additionally, the expectations of increased US production under President Trump further undermine the WTI price. Earlier this week, Trump declared a national energy emergency and used the authority to rapidly approve new oil, gas, and electricity projects that would normally take years to get permits. 

US crude inventories fell for the ninth consecutive week. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the United States for the week ending January 17 declined by 1.017 million barrels, compared to a fall of 1.962 million barrels in the previous week. The market consensus estimated that stocks would decrease by 2.1 million barrels.

Oil traders will keep an eye on the developments surrounding Trump's policy announcements. Also, the preliminary US S&P Global Purchasing Managers Index (PMI) for January will be published later on Friday. In case of a weaker-than-expected outcome, this could drag the US Dollar (USD) lower and provide some support to the USD-denominated commodity price.