Why Oil Prices Plunged to Multi-Year Lows After Trump’s Tariffs | Global News Avenue

Crude oil futures were close to trading at their lowest levels in years Wednesday as production on U.S. tariffs and OPEC+ rattling commodity markets were surprising.

West Texas Intermediate ((WTI) Crude oil futures for the U.S. oil benchmark fell 4% on Wednesday, trading at $65.22, close to the lowest price in the second half of 2021. American oil companies (including Conocophillips)police) and Exxonmobil (XOM), following the lower crude oil price.

In recent days, President Trump imposed the oil market yesterday 25% tariff On Canadian and Mexican goods. Trump also doubled tariffs on Chinese imports to 20%.

Trump threatened for the first time to crack down on tariff imports from Canada and Mexico, with oil prices rising in late January as tariffs would limit supply. This time, market participants are concerned about the losses that taxation and retaliation measures may take to the global economy.

It is widely expected that tariffs will slightly accelerate U.S. inflation and economic growth in the near term. They are expected to cause greater losses to Canadian and Mexican economies and have the potential to fall into two considerable oil markets.

Oil prices have been from Monday OPEC+ It is decided to increase oil production starting from April. Gradually growing will reduce production by major oil producers committed in November 2023.

Lower oil and gas prices were the main focus of Trump’s campaign last year. He promised that the United States would “drill, baby, drill” to reduce shipping costs and eventually lose its temper. Oil prices have steadily declined under Trump, with WTI falling about 15% since reaching his inauguration, and fuel prices have dropped slightly over the past month.

Oil prices rise Eat on inflation By increasing the cost of driver gasoline and increasing the production and transportation costs of the enterprise. Research shows that oil prices can also affect inflation expectations, which is a meaningful contribution to actually rising prices.