American oil prices have dropped sharply, briefly plunging below $ 60 a barrel on Sunday – their lowest level in almost four years – while the economic benefits of the last series of Prices by President Trump have repercussions in the world.
Brut oil is now about 15% less than last Wednesday, just before Mr. Trump reveals his plans to impose new rigorous prices on imports from most countries. These prices have dropped so far, it so quickly reflects concern that the high prices could slow economic growth and perhaps even cause recessions in the United States and in the countries with which it is negotiated.
Cheaper oil is generally good for consumers and businesses that use petrol, diesel and jet fuel. In fact, Mr. Trump and his collaborators were pressure for energy prices to reduce inflation.
But if prices remain around these levels or drop more, American oil and gas companies are likely to slow down drilling, reduce spending and dismiss workers. It would be particularly painful for states rich in oil such as Texas and New Mexico.
Another great reason why oil prices have weakened is that the OPEC cartel and its allies announced last week that they accelerate the plans to increase production. This will increase oil supply at a time when many analysts expect the demand.
American energy companies are also pressed by higher costs for essential materials such as steel tubes, which are subject to a 25% rate that Trump announced in February.
Small oil companies – A key district for Mr. Trump – are probably among the first to slow down because they tend to be more agile and have fewer financial resources. The prices of natural gas have been more resilient, providing a little cushion to producers.
Last week, the course of the share of a fund negotiated on the stock market made up of American oil and gas actions fell by 20% within two days of the announcement of Mr. Trump’s tariff.
