Crude oil prices experienced a 1.1% decline on January 23, 2025, as West Texas Intermediate (WTI) futures fell to $74.62 per barrel, according to Morgan Stanley's latest Global Macro Commentary. This drop occurred despite the Energy Information Administration (EIA) reporting a 1.0 million barrel decrease in weekly U.S. crude oil inventories. The decline was attributed to comments from President Trump, who expressed intentions to encourage OPEC nations to "bring down the cost of oil." The market's reaction to these remarks highlights the sensitivity of oil prices to geopolitical influences, even as inventory data suggests tightening supply. Morgan Stanley notes that the fall in oil prices also contributed to a slight easing in front-end U.S. Treasury yields, as it potentially alleviates inflation expectations.