Despite the concerns that President Trump’s trade war will prevent the demand of the trade war, the OPEC Plus Cartel said on the weekend that the Opec Plus Cartel resumed their downward slide as it would pump more oil.
The US benchmark oil prices stood at about $ 56 from $ 58 on Friday. For many companies, continuous decrease means drilling wells in the United States, despite the call for the increase in production of Mr. Trump.
In early April, this level was almost priced, Mr. Trump said he would break mutual tariffs for 90 days in most countries. As a result of this announcement there was a rally in both the stock market and the oil market, although oil prices have dropped since then.
This is partially because OPEC Plus is the same output that economists warn that the higher tariffs of most American trading partners will slow down global economic growth and potentially cause recession in the United States.
The eight countries built on OPEC Plus Cartel said Saturday that they would increase production in June.
The price of low products is pulling some companies behind. According to Bakar Hughes, there are about 9 percent less riggs drilling wells than this time last year, while last year’s aircraft was dealing about $ 80 $ 80 on the plane barrel.
On Friday, the two largest US oil and gas companies, Excen Mobil and Chevron, have reported their lowest first-three-year income. Mr. Trump reflects the market in the beginning of April before increasing further tariffs in China.
“It is clear that this uncertainty depends on the economic forecast, causing significant instability and increasing the likelihood of slow growth,” the CEO of the Exa Darren Woods told analysts.
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