Trump's advisor warned that oil prices could plummet to $40 per barrel if Putin does not agree to a peace deal.

If Putin does not proceed with operations concerning Ukraine, the U.S. will significantly increase oil supplies to the global market, driving prices down to $40 per barrel or lower, stated Robert Wilkie, head of the team of elected President Donald Trump, in an interview with BBC Radio 4.

“The U.S. presence in the global oil market will push prices down – and this will bankrupt the Russian economy. It will exert tremendous pressure on Putin's military economy,” Wilkie remarked.

He also announced an increase in American liquefied natural gas supplies to Europe, where U.S. LNG already holds 70% of the market, and in some countries, such as Germany, it accounts for about 90%.

The energy sector contributes more than half of all export revenues to Russia and provides a quarter of the budget's tax income.

During the election campaign, Trump announced a massive expansion of oil and gas production in the U.S. under the slogan “Drill, baby, drill!” as noted by The Moscow Times.

He promised that oil production in the country would increase by 15%, or 3 million barrels per day – a volume that fully covers the current export of Russian oil via tankers.

Trump indicated plans to allocate federal lands and offshore areas to oil companies, including allowing drilling in oil-rich states, primarily in Alaska and Texas, as well as in the Gulf of Mexico.

In addition, he announced the cancellation of the ban on the construction of new pipelines imposed by Joe Biden and the removal of regulations on LNG exports.

Background. The day before, in his first public address to Putin, Trump threatened to intensify sanctions, up to a complete embargo on all Russian goods, if the Kremlin does not agree to end the war.