Not only the stock market courses of numerous companies have been deposited into the basement in recent days. The fear of a global trade war and a recession in large parts of the world is increasing as a result of the aggressive customs policy of Donald Trump. However, the case has at least a pleasant side effect: in the meantime the prices of crude oil fell in the meantime. Directors can therefore benefit from Trump’s attacks on free trade.
On Monday the price of Brent Oil fell temporarily to $ 62.51 and that for WTI oil to $ 58.95. That was the lowest level since April 2021. On Tuesday the prices recovered a bit. Nevertheless, customs policy remains the determining subject. The expectation of global economic downfillation dampens the demand for crude oil. A number of American banks recently reduced their predictions for the oil price. Relaxation in the customs flict is not in sight. If China does not take back his counter tariffs, Trump wants to prove the country with extra rates of 50 percent.
“All in all, the uncertainty remains extremely high,” Commerzbank analyst Carsten Fritsch commented on the situation on Tuesday. “This alone is a burden for the economy, because companies with investments and consumers probably come across purchases.” That is why the recovery potential for cyclical raw materials such as crude oil is limited. “Whether there is a threat from another crash depends on whether the American customs dispute escalates even further, which, at least in view of the hard posture of the US and China, cannot be completely excluded,” Fritsch continues.
According to the expert, one thing has been established: “If the price of crude oil drops so strongly, prices will also fall at the gas station.” The current prices for the Austrian and German petrol pumps do not reflect the torture course, but the trend has been shown since the beginning of the year. Met ongeveer 1,58 euro was een liter diesel dit jaar gemiddeld goedkoper dan 2024, Eurosuper met EUR 1,55 bij drie cent goedkoper dan diesel en twee cent goedkoper dan in het 1e kwartaal van 2024. Volgens Öamtc, de gemiddelde prijzen (in de respectieve federale staten) voor diesel zijn momenteel tussen 1,512 euro en 1.579 eurro’s en 1,579 eurro’s en 1,579 eurro’s en 1,579 Euros and 1,579 Euros and 1,579 Euros and 1,579 Euros and 1,579 Euros and 1,509 Euros and 1,50999 1,574 euros per liter.
Oil -Export States decision also presses the price
Analysts refer to the fear of recession and the limitation of world trade – has been less traded, is also less oil in the requirement – also to the fact that the OPEC+ Oil export statements have recently terminated a financing limitation. The reduction in daily production that will be determined by 2.2 million vessel in 2023 must be gradually reversed.
“If the financing is expanded, this is definitely a boost in the direction of cheaper oil prices,” said Christian Laberer, fuel market expert at the German traffic club ADAC. However, the extensive expansion has the potential to print the oil price with a few dollars and the fuel price with a few cents. However, this can only be expected if the mineral oil companies pass on the price decrease on the world market to consumers at the gas stations. According to Laberer, the end of the heating season also plays a role: “Diesel control programs can currently hope that the end of the heating season will bring the typical relaxation for the price of its fuel.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
