Posted on 04/09/2025 5:17:47 AM PDT by marcusmaximus
U.S. crude oil futures fell more than 6% on Wednesday, as China slapped retaliatory tariffs on the U.S. after President Donald Trump’s sweeping levies took effect.
The U.S. benchmark dropped $4.01, or 6.7%, to $55.57 per barrel by 7:53 a.m. ET. Global benchmark Brent tumbled $4.04, or 6.4%, to $58.78.
(Excerpt) Read more at cnbc.com ...
Let me see if I get this right, oil prices are dropping at the bad tariffs from Trump are taking effect and CNBC writes this up as it is a bad thing?
Oil producers in the USA take a hit. So supply might be affected. Doubt it. Cheaper oil is good in so many ways.
Cheap oil is always an overall good. It is myopic to only look at cheap oil from the Cooperate perspective.
Major petroleum producer Russian Federation takes a far bigger hit with the lowered prices, mainly due to Saudi Arabia unilaterally raising their output, thus upsetting the supply-demand ratio.
It might be noted, that the US has also increased their daily output, and the supply will soon be reaching the glut level.
Are there independent drillers that can make a profit at a lower price?
Honestly I don’t know, for now we have to let the market fluctuate until it finds the new equilibrium. The benefit of this current activity is it typically will create a downward push on pricing across the board for nearly every commodity.
While it actually may be harder for upstart oil developers it will created a ton of opportunities for local (American) business to launch as pricing becomes more reasonable.
Indeed only a few in the news media aren’t every news day is like the Groundhog day movie.
Repeat and often
Their audience is Wall Street with all of its prima donnas.
Mr President, this country needs more and newer oil refineries.
Time to refill the strategic petroleum reserve!
“more and newer oil refineries”
I’m watching the seventh season of Mission: Impossible on DVD.
One episode showed the price of gas in the LA area, 26/28 and 9/10ths.
I don’t think too much US oil gets to China.
Bad for Russia and other global oil producers.
Gas pricing here in Florida is amazing unstable.
$2.93 one week
$3.17 another week
Trade balancing has to be done.
If Congress thinks it can do it better than Trump, it can get to work.
The Europeans and Chinese need to understand that Trump is acting because the massive trade deficits and the budget deficits are simply too massive to be sustainable.
“These tariffs adjust for the unfairness of ongoing international trade practices, balance our chronic goods trade deficit, provide an incentive for re-shoring production to the United States, and provide our foreign trading partners with an opportunity to rebalance their trade relationships with the United States.”
“first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory.”
FDR
Some states are going to have $1.50/gal.
The price of gas in Florida is certainly weird. It fluctuates from 3.09 to 3.39 week to week. Central Florida. I’ll love it when it falls below 3 if it ever does.
Affects Russia as well! Less revenue for war in Ukraine
All major exporters of petroleum will take hits to their economy whether it is Nigeria, Venezuela, Canada, Qatar, Iraq, Iran, Russia and every other OPEC member.
Net importers of oil like China, India, Japan, South Korea. and the EU will benefit.
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