Petroleum prices fell on Thursday due to the last round of tariffs of President Trump will stop economic growth worldwide, braking the demand for gasoline, diesel, fuel for airplanes and other forms of energy.
The price of the US oil. UU. It fell around 7 percent on Thursday, establishing a little of $ 67 per barrel, around the levels of mid -March. The prices of many metals, such as copper, silver and gold, also fell sharply.
Trump had tried to isolate the United States energy industry from a commercial war exempting the energy and certain minerals of the rates he announced on Wednesday. But it is likely that the broader impact of its tariffs will exceed any effort of the administration to protect specific sectors.
A bottom -listed fund composed of US oil and gas companies closed more than 10 percent on Thursday, more than double the S&P 500 shares index. Exxon Mobil’s shares, the largest American oil company, closed more than 5 percent, and Chevron’s shares closed more than 6 percent.
The lower price combination of oil and higher costs for essential materials such as steel pipe threaten to squeeze national oil and gas producers. There is also a risk that some countries can point to oil and natural gas, the key exports of the United States, if they retaliate against the rates that Mr. Trump has implemented. The president has imposed particularly steep tariffs on some of the largest markets for American energy, including China, Japan and the members of the European Union.
Companies generally need prices greater than $ 60 per barrel to earn money drilling new oil wells in the United States.
In addition to the pressure on oil prices, the organization of oil exporting countries and their allies said Thursday that they would increase production more quickly than expected. The group has been voluntarily retaining production to maintain high prices.
“While the meeting was known, the announcement is a surprise, particularly after the newly announced tariffs of President Trump,” wrote Tph & Company analysts in a note to investors.
