Barrel Breakdown As Global Trade War And OPEC+ Push Oil To Three-Year Lows
Trump’s tariff tsunami has dragged oil markets deep into the abyss, proving that no sector is safe from his economic riptide. Despite oil’s exemption from the sweeping trade measures, the industry’sXOP ETF plunged 10.7% Friday. Traders are reading the tariff tea leaves as harbingers of weakening global demand — and darker clouds are gathering on the horizon.
- “The scale of some … tariffs will raise global demand concerns,” said an ING analyst — while a Rystad Energy analyst added, “It’s difficult to fully assess the long-term impact [right now] … but there will undoubtedly be immediate and severe consequences.”
- ExxonMobilXOM, ChevronCVX, and OccidentalOXY tumbled 7.2%, 8.2%, and 7.7% Friday, respectively, as Crude barrel prices dropped to $64.89 — their lowest level since 2021, but still well above the White House’s $50 target.
Supply surge mismatch: Just as demand wobbles under tariff pressure, OPEC+ is opening the taps — reversing three years of supply cuts that had propped up oil prices. Eight members, including Saudi Arabia and Russia, announced a 3x output increase just hours after Trump’s tariff declaration — a peculiar timing, but possibly what’s needed to stimulate economic growth amid analyst fears of a global recession.