President Trump’s sweeping tariffs combined with OPEC’s unexpectedly large production hike are combining to trigger a “double whammy” on the oil and gas sector, resulting in crude prices tumbling and fears rising of lower energy demand in an economic slowdown.
The tariffs, which did exclude oil and fuel imports, are still expected to increase equipment and supply costs for energy production, construction and transportation, while potentially creating weaker global energy demand. The decision from key OPEC nations and allies, especially Saudi Arabia and Russia, to triple their expected production increase in May adds extra supplies on top of existing recession fears.
