Oil prices have resumed their slide after the Cartel OPEP Plus oil producers said during the weekend that he would pump more oil, even if analysts say that demand could drop if President Trump's trade war limits economic growth.
The price of American reference oil fell at around $ 56 per barrel on Sunday, from $ 58 on Friday, before finding part of this land on Monday morning.
Trump said he would reduce Americans' energy costs and called for an increase in drilling. But for many companies, the regular drop in prices means that it will not be profitable to drill wells in the United States.
Prices were the last at this level in early April, just before Mr. Trump appeared in reciprocal prices on most countries for 90 days. This announcement has led to rallies both in stock and the oil markets, although oil prices have since been declined.
This is partly because OPEC Plus increases production at the same time as economists warn that higher prices on most American trade partners will slow global economic growth and potentially cause a recession in the United States.
The eight countries that make up OPEC Plus said on Saturday that they would increase production in June.
The oil cartel had accepted production cuts as a means of strengthening prices, but analysts said that Saudi Arabia, its de facto chief, has tired of pumping less oil while other countries, such as Kazakhstan and Iraq, exceed their production quotas.
OPEC Plus has put pressure on Kazakhstan to limit its production, 400,000 barrels per day above its ceiling in March, according to the International Energy Agency. But the country does not seem willing to force investors like Chevron, who spent nearly $ 50 billion to extend its Tengiz oil field in Kazakhstan with the intention of pumping one million additional barrels per day.
The increase in production can also be a SOP for Mr. Trump, who prompted producers to pump more oil to reduce prices. The president should soon go to Saudi Arabia and other countries in the Middle East.
The drop in raw material prices means that some companies withdraw. There are about 9% of platforms in less drilling wells in the Permian basin, the US oil field, that there was once last year, when oil was exchanging nearly $ 80 a barrel, according to Baker Hughes.
Friday, Exxon Mobil and Chevron, the two largest American oil and gas companies, published their lowest income in the first quarter for years. These results reflect the market before Mr. Trump has yet increased prices on China in early April.
“It is clear that this uncertainty weighs on economic forecasts, provoking significant volatility and increasing the prospects for slower growth,” Darren Woods, CEO of Exxon, told analysts.
Stanley Reed Contributed reports.
