The economic fallout from President Trump’s latest round of tariffs has sent shockwaves through the global energy market, causing oil prices to plummet below $60 a barrel for the first time in almost four years.
The price of crude oil has dropped by over 15% since last Wednesday, largely due to concerns that high tariffs could slow economic growth and even trigger recessions in the US and its trading partners. On Monday, oil prices continued their downward trend, falling more than 2%.
Lower oil prices are good news for consumers and businesses that rely on gasoline, diesel, and jet fuel, as it can curb inflation. However, if prices remain low or fall further, US oil and gas companies are likely to slow down production, cut spending, and lay off workers, which would be particularly devastating for oil-rich states like Texas and New Mexico.
The OPEC cartel’s announcement last week to increase production is also a contributing factor to the weakening of oil prices. Additionally, higher costs for essential materials such as steel tubing, subject to a 25% tariff imposed by Trump in February, are squeezing US energy companies. Smaller oil companies, which tend to be more agile and have fewer financial resources, may be among the first to slow down.
The share price of an exchange-traded fund composed of US oil and gas stocks plummeted by 20% last week after Trump’s tariff announcement, highlighting the industry’s vulnerability to the president’s policies.
Source: https://www.nytimes.com/2025/04/06/business/energy-environment/oil-prices-trump-tariffs.html