As the market reacts to President Donald Trump’s strategic global tariff plan, U.S. oil prices have reached their lowest level since 2021 after plummeting below $60 a barrel.
While liberal economists claim these tariffs will cause disaster, American consumers are already seeing benefits at the gas pump, with prices dropping slightly across many states.
The price of U.S. West Texas Intermediate crude futures dropped dramatically to $58.95 per barrel, with Brent crude falling to $62.51.
This represents a decrease of approximately 15% since President Trump announced his tariff strategy, designed to protect American industries and workers from unfair global competition.
Gas prices across the nation have been experiencing what AAA describes as a “yo-yo” effect.
“Oil prices plummeted last week, which should contribute to lower prices at the gas pump,” AAA Auto Club Group spokesman Mark Jenkins said.
The state average for regular unleaded fuel rose 15 cents early last week to $3.22 per gallon before decreasing to $3.19.
Despite these fluctuations, current prices remain lower than the $3.39 average from the same time last year, providing relief to American families.
While Wall Street firms like JPMorgan have increased their recession odds to 60% due to the tariffs, the actual impact on everyday Americans tells a different story.
Lower oil prices directly benefit consumers and businesses using gasoline, diesel, and jet fuel.
Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place. This is…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 7, 2025
The drop in oil prices also comes after OPEC+ announced plans to significantly increase oil production in May, adding additional downward pressure.
Saudi Aramco has already reduced the price of its flagship Arab Light crude, signaling that global oil producers recognize the changing market dynamics under the Trump administration.
Goldman Sachs has adjusted its oil price forecast downward. It now predicts that U.S. crude will reach $58 per barrel by December 2025, with Brent at $62.
These projections suggest continued relief for American consumers at the pump throughout the year.
Jenkins explained:
“The oil price plunge is reportedly attributed to concerns that tariffs could cause a global economic slowdown, potentially resulting in a reduction in fuel demand. The market is also now worried about an over abundance of global oil supplies. This comes after OPEC+ announced plans to raise oil production in May by about three times more than previously planned.”
While some energy companies may face challenges from higher costs for materials like steel tubing due to the 25% tariff, the natural gas market remains relatively stable.
This stability provides a cushion for the energy sector while the broader benefits of the president’s policies take effect throughout the economy.
With gas prices expected to fall and domestic industries strengthening under protection from unfair foreign competition, President Trump keeps championing America’s interests.
