Petroleum prices resumed their fall after the OPEC plus the poster of oil producers said during the weekend that it would be more oil pumping, only that analysts say that demand could fall if President Trump’s commercial war brakes economic growth.
The price of the US reference oil. UU. It settled at $ 57.13 per barrel on Monday, the lowest level in more than four years and more than 25 percent from just before Trump taught a position.
Trump has said he would reduce energy costs for Americans and asked for greater drilling. But for many petroleum and gas executives in the United States, who were great donors of the president’s campaign, the constant price decrease means that it will not be profitable to drill new wells.
OPEC Plus leaders seem to be making a calculated decision to increase production even to reduce prices and, therefore, how much money it earns by selling oil, for geopolitical reasons. They want to punish the members of the poster who have been producing more of the quotas they agreed, analysts said. Saudi Arabia, the de facto leader of the poster, also wants to strengthen his ties with Mr. Trump, according to energy experts.
The prices of the letters fell to around $ 55 per barrel at noon in the operation in early April, just before Trump said that reciprocal tariffs would pause in most countries for 90 days. That announcement led to demonstrations both in the actions and in the oil markets, he thought that oil prices have been done since then Daned.
This is partly due to the fact that OPEC Plus is increasing production at the same time that economists warn that the highest rates for most US commercial partners will slow down global economic growth will cause a recession in the United States.
The countries that make up the OPEC Plus said on Saturday that they would further increase production in June.
The oil sign had agreed to the production cuts as a way of reinforcing prices, but analysts said Saudi Arabia has tired of pumping less oil, while countries, such as Kazakhstan and Iraq, exceed their production quotas.
Opep Plus has pressed to Kazakhstan to stop its production, which was 400,000 barrels per day above its roof in March, according to the International Energy Agency. But the country seems to be willing to limit investors as Chevron, who spent almost $ 50 billion to expand its have their tense field in Kazakhstan with the intention of pumping an additional million barrels per day.
The increase in production can also be a SOP for Trump, who has pushed producers to pump more oil to reduce prices. The president is expected to travel soon to Saudi Arabia and other countries in the Middle East.
While the lowest prices help US consumers harm the large and political American oil industry in the United States, which has a huge presence in states such as Alaska, Louisiana, New Mexico and Texas.
Some companies are already going back. There are about 9 percent of Feer platforms drilling wells in the Permian Basin, the Upper Petroleum Field of the United States, which this time last year, when oil quoted about $ 80 per barrel, according to Baker Hughes.
On Friday, Exxon Mobil and Chevron, the two largest oil and gas companies in the United States, reported their lowest profits of the first quarter in years. These results reflect the market before Trump further intensifies tariffs on China in early April.
“It is clear that this uncertainty is weighing economic forecasts, causing significant volatility and increasing the prospects for slower growth,” Darren Woods, Executive Director of Exxon, told analysts.
Stanley Reed Contributed reports.
