Tariffs & Oil Prices: Economic Slowdown Fears

The danger of tariffs by Head of state Donald Trump is increasing worries about an international slowdown, which in turn is affecting decreased expectations for oil need, Wirth stated, however there is no evidence in the information of financial weakness. He instead attributed the current autumn in oil rates, to below $64 per barrel, to faster-than-expected supply increases by OPEC+ and non-OPEC manufacturers.

Oil Price Sensitivity

“That’s an area where if we were to be at a $60 rate or perhaps lower you’re likely to see activity pull back in this field and you’ll see the production action over a couple of months,” Wirth stated. “That’s what we should watch, not so much the deep water activity.”

Macroeconomic Impact of Tariffs

“The results that we really feel are most likely to be a lot more the macroeconomic effects as they flow through the economy,” Wirth included. “The bigger issues would certainly be what would it suggest for development, and worldwide trade and how does that evolve.”

No Recession Yet, But Slowdown Possible

“There’s no indications that we see now that we remain in or near to a recession,” Wirth said in the interview. “There are indicators that development may be slowing down and we have to always be planned for that.”

U.S. petroleum rates have actually fallen concerning 11% given that Trump announced worldwide tariffs on April 2, and on Tuesday the International Monetary Fund cut its development for the united state this year to 1.8%, down from 2.7% in 2024, citing trade stress.