Oil Prices Tumble Further as Trump’s Tariffs Weigh on Economic Outlook
The prices of US oil decreased abruptly, briefly immersing themselves below $ 60 per barrel on Sunday – their lowest level in almost four years – since the economic repercussions of the last round of rates of President Trump have reverberated all over the world.
Greggio now costs about 15 percent less than it did last Wednesday, just before Trump revealed his plans to impose new stiff rates on imports from most countries. That prices decreased so quickly deepen the concern High rates could slow down economic growth and perhaps also cause recessions in the United States and in the countries with which it markets.
The cheapest oil is generally good for consumers and companies that use fuel for petrol, diesel and jet. In fact, Mr. Trump and his helpers have pushed for lower energy prices to curb inflation.
But if the prices remain around these levels or decrease further, it is likely that oil and US gas companies slow down the perforation, will cut the expense and fire workers. It would be particularly painful for oil -rich states such as Texas and New Mexico.
Another great reason why oil prices have weakened is that the OPEC sign and its allies announced last week that they would do it accelerate plans to increase production. This will increase the oil offer at a time when many analysts expect the demand to weaken.
US energy companies are also crushed Higher costs for essential materials Like the steel tube, which is subject to a 25 %rate, Mr. Trump announced in February.
The smaller oil companies – a key electoral college for Mr. Trump – are probably among the first to slow down, since they tend to be more agile and have fewer financial resources. The natural gas prices have been more resistant, providing a little pillow for producers.
Last week, the price of the actions of a fund negotiated in the stock exchange consisting of US oil and gas actions decreased by 20 percent in the two days following the tariff announcement of Mr. Trump.
