Trump trade war uncertainty threatens U.S. oil production
Portfolio Pulse from
President Trump's volatile trade policy is creating significant uncertainty in the oil market, causing crude prices to swing dramatically and potentially undermining US shale oil production. With prices hovering around $60 per barrel, oil companies may reduce capital expenditures and drilling activities, as they need prices around $65 to drill profitably.
April 10, 2025 | 2:45 pm
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NEGATIVE IMPACT
The United States Oil Fund may experience downward price pressure due to fluctuating crude oil prices and reduced investor confidence in the energy sector.
Volatile oil prices and potential production cutbacks directly impact the performance of the US Oil Fund, suggesting a likely short-term decline.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 85
NEGATIVE IMPACT
The Energy Select Sector SPDR Fund may experience increased volatility due to uncertain oil prices and potential reduction in shale oil production.
Trade war uncertainty is directly impacting oil prices and production, which will negatively affect energy sector stocks and ETFs in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 80