Oil price drops due to exhibition panics for import duties, petrol price follows

This article was last updated on April 8, 2025

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Oil price drops due to exhibition panics for import duties, petrol price follows

After the stock prices in the dark red shots worldwide, the oil price has also reached the lowest point in four years. A week ago a barrel of rough Brent oil still cost 75 dollars. Today the price fluctuates around 64 dollars. For the last time the oil was at that price level, we have to go back in time four years.

The price of oil is closely related to how the economy is doing and trust in economic growth. Based on that, economists make their estimates of the demand for oil. If the economy runs well, then that question increases, which drives up the price.

After several days of panic at the stock markets and deep red figures by the announced import duties From Trump, it is therefore not so strange that the oil price has also fallen quickly. Estimates about the demand for oil have all been adjusted downwards. Economists fear the consequences of a global trade war and take into account a possible recession.

10 cents per 10 dollars

A diving of the oil price means that the gasoline price is compromised. “You are already seeing it at the pump today,” says energy specialist Jilles van den Beukel of the Hague Center for Strategic Studies. “You can say very roughly that a decrease in the oil price of 10 dollars means that gasoline is 10 cents cheaper.”

The cartel of oil -producing countries, OPEC, announced last week that it was precisely to increase oil production on 1 May. According to Van den Beukel, they had been planning that for a long time, but it was always postponed. Now that is bad, because that could bring the prices even further down. It is possible that this decision is still being reversed.

Political decisions

“In fact, this one doesn’t look good,” says Van den Beukel about the falling oil price. “Oil -producing countries are not happy, the American industry is not either, and Russia, which gets half of its state income from oil, certainly not either.” Car owners seem to be the only ones who benefit somewhat in the short term.

How long the prices continue to fall, and with how much, nobody knows. “In this geopolitical world we have become very dependent on political decisions,” says Van den Beukel. “Maybe Trump turns something back when he brings in a nice ‘price’. But nobody can now predict how this will continue.”