Oil prices may need to drop another 20% before this year’s slides stop
President Trump’s desire to lower oil prices has so far raised near its four-year lows, crude futures.
And some people on Wall Street think that prices will go down even further before management is motivated to intervene to support the oil market as cascaded bond prices have. It was a catalyst “Place the cards” in the form of Tax suspension.
“The price range is much lower now,” wrote Natasha Kaneva of Global Commodities Strategy and her team’s JP Morgan head on Monday.
“If WTI prices fall below $70 by guiding refills in the US SPR (a strategic oil reserve), it’s unlike the Biden administration, which is actively pursuing interventions as long as they don’t go down aggressively.”
That means that the West Texas intermediate (meaning that oil prices have fallen 20% from current levels (midway between West Texas)wti) US benchmark oil prices hovered near $61 per barrel on Monday. Brent (Bz = f) International benchmark crude sat under $65 a barrel.
As of Monday afternoon this year, both gauges had fallen by more than 14%.
read more: Latest news and latest news on Trump tariffs
11:44:05 PM EDT. Market open.
cl = f Bz = f
President Trump I said it in February The US fills the movement that increases demand and, theoretically, supports prices – no specific timeline given.
Wall Street analysts are Lower price targets For oil in recent weeks, as the fear of demand emerged from the escalating trade war caused by Trump’s tariff policies. Prices also fell by the organisations of oil exporters and their allies as they vote to increase their output for next month.
On Monday, JPMorgan reduced Brent’s year-end average price forecast to $66 per barrel, and to WTI to $62. The company also predicted that WTI will average under $60 per month, closing down $55, starting in August this year.
“US shale producers will bear the brunt of these developments,” Kaneva wrote, predicting a 2026 production contraction.
Industry officials also highlight that rising costs of drilling have already caused production to plateau after the US produced Record oil last year.
Rig count data for the week ending April 11th showed 567 rigs operating at 598 in 2024. According to data from Bake Hughes.
“Drills, babies, drills… prices below $70 per barrel can’t happen just because US oil patches can’t afford it,” Ed Hills, a senior fellow at the University of Houston, told Yahoo Finance Monday.