President Trumpâs presidential promises included lower gas prices and increased U.S. oil production, but only gas prices have fallen. Crude oil has dropped nearly 25% since January, with West Texas Intermediate falling from around $80 to just under $60 a barrel. However, U.S. producers are not opening new wells due to low prices. Tariffs are causing economic uncertainty, impacting oil demand. OPEC+ is increasing production despite expectations of lower demand due to trade tensions, which may lead to reduced growth in countries like China.
One of those things is happening. Prices at the pump have indeed gone down, largely because the price of crude oil has dropped by nearly 25% since the start of January.
When economies are booming, companies are opening factories, and people are buying things and going places, oil consumption climbs. When economies slump, so does oil demand.
Analysts at Rystad Energy, a research company, have said that a trade war extending through 2025 could halve the expected growth in Chinese oil demand.
The tariff situation is so atypical that comparing this year to last year has become largely irrelevant.
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