The world is watching as U.S. oil prices plunge amid market shifts following President Donald Trump’s tariff announcements.
Specifically, prices went down to a stunning below $60 per barrel for the first time since 2021.
West Texas Intermediate crude futures dropped to a shocking $58.95 per barrel in overnight trading, with Brent crude falling to $62.51.
This marks a dramatic 15% decline in crude oil prices since President Trump announced his tariff plans.
The state average price for regular unleaded fuel has been on a roller coaster, rising 15 cents to $3.22 per gallon early last week before decreasing to $3.19.
Despite these fluctuations, current prices remain below the $3.39 average from the same time last year, indicating a positive trend for consumers still recovering from record-high prices under the previous administration.
“Oil prices plummeted last week, which should contribute to lower prices at the gas pump,” said AAA spokesman Mark Jenkins.
“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,” he continued.
“This comes after OPEC+ announced plans to raise oil production in May by about three times more than previously planned,” Jenkins added.
While mainstream media outlets focus on potential economic concerns, the immediate impact for working Americans appears positive.
AAA predicts gas prices will continue decreasing due to the drop in global oil prices, potentially putting more money back in the pockets of hardworking families.
This comes as welcome news for consumers who have struggled with inflation eating away at their paychecks.
President Trump’s tariff announcements have sparked debates about broader economic impacts, but the immediate effect on energy markets has been swift and significant.
Goldman Sachs has lowered its oil price forecast for December 2025 to just $58 per barrel for U.S. crude, with further declines expected in 2026.
While JPMorgan claims the tariffs “would likely push the U.S. and possibly global economy into recession this year,” many conservative economists view this as typical overreaction from Wall Street.
Trump supporters argue that lower oil prices benefit consumers and businesses dependent on gasoline, diesel, and jet fuel, potentially offsetting other economic pressures.
The Saudi response has been particularly noteworthy. Saudi Aramco reduced the price of its Arab Light crude in an apparent acknowledgment of America’s strengthened position in global energy markets.
While financial analysts debate the long-term implications, the immediate effect puts money back in the pockets of everyday Americans.
With approximately half of the gas pump price directly influenced by the price of oil, these market shifts represent savings for consumers.
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
