US oil prices dropped below $60 per barrel for the first time since 2021, raising concerns over a potential recession driven by President Trump's tariffs. The decline was also fueled by OPEC's decision to increase supply, prompting fears of an oversupply situation, with analysts predicting a surplus of 1.25 million barrels per day. Despite the price drop, President Trump took to social media to celebrate the situation, emphasizing perceived economic benefits, while analysts warned that persistent low prices could hurt American oil production and fracking activities.
The risks introduced by President Trump's tariffs and OPEC's acceleration amplified the surplus we already saw forming.
If low oil prices stick around, American frackers will be forced to re-evaluate their spending levels and will likely slow their drilling.
Bank of America forecast the global trade war will cut oil demand growth in half this year to 450,000 barrels per day.
Trump celebrated the lower prices, stating, 'Oil prices are down, interest rates are down... there is NO INFLATION.'
Collection
[
|
...
]