The tariffs imposed by President Trump have severely affected oil prices, driving Brent crude to its lowest level in four years. Recent developments include a decision by OPEC+ to increase oil supply dramatically in response to non-compliant member states. Experts attribute the declining prices not only to tariff-related uncertainties but also to low demand, stable supply, and the geopolitical tension stemming from trade wars, suggesting a complex interplay of factors is influencing the market today.
"It is not just a question of abrupt policy and rate of tariffs, but the ongoing level of uncertainty and the tit-for-tat approach," says Carole Nakhle, CEO of energy consultancy Crystol Energy. "Add to that the fact that this happened when oil demand was not booming while supply is plentiful, the result is the price levels we are currently seeing."
OPEC+ members have decided to dramatically ramp up supply in May, a shocking pivot from their previous strategy of limiting output to maintain high prices.
Collection
[
|
...
]