this post was submitted on 04 Apr 2025
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Oil prices crumble as Saudi Arabia throws in the towel on restricting supply (www.middleeasteye.net)
submitted 4 days ago by geneva_convenience@lemmy.ml to c/worldnews@lemmy.ml
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Oil prices continued their free fall on Friday as the market absorbed a double whammy of shocks after US President Donald Trump announced sweeping global tariffs and the Opec+ alliance decided to massively increase crude production.

The price of Brent, the international benchmark, has dropped more than 11 percent in two days, plunging from $74 per barrel at the beginning of this week to about $66 per barrel. The drop has put crude prices at their lowest levels since 2021.

The sell-off shows how Trump’s trade war is already unleashing secondary effects on the Middle East.

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[–] pelespirit@sh.itjust.works 43 points 4 days ago* (last edited 4 days ago) (2 children)

I wouldn't really call it a crumble. It was this low this past March around the same time and it dropped this low in September last year. Also, oil is exempt from the tariffs, but the people using the oil is probably going to lower too. I think this is a weird headline.

https://markets.businessinsider.com/commodities/oil-price?op=1

https://www.theguardian.com/us-news/2025/apr/04/trump-exempts-big-oil-donors-from-tariffs

[–] avidamoeba@lemmy.ca 19 points 4 days ago (2 children)

The drop should dampen some of the inflationary effects of the tariffs. MBS is essentially helping Trump in this one.

[–] arotrios@lemmy.world 11 points 4 days ago* (last edited 4 days ago) (1 children)

Agreed - actually came here to say this. The Saudis have been pretty blatant in how they time their pricing manipulation to American politics and economic trends. Like how oil prices stayed high even after COVID killed demand while Biden was in office, or how they flooded the market to try and kill the American fracking industry after Trump was elected the first time.

[–] avidamoeba@lemmy.ca 2 points 3 days ago

Trump may have asked for this. I guess we'll know how the relationship is going if they reduce production in the future. 😂

[–] qprimed@lemmy.ml 9 points 4 days ago (1 children)

good observation. wonder how texas and louisiana "drill baby drillers" are doin' right now...

[–] ryannathans@aussie.zone 2 points 4 days ago (2 children)

Depleting middle east oil reserves faster so US oil ultimately gains value in the long term

[–] GaMEChld@lemmy.world 8 points 4 days ago (1 children)

We can't even refine our own oil. We import sweet crude to our refineries and export sour crude to international refineries.

[–] qprimed@lemmy.ml 4 points 4 days ago* (last edited 4 days ago) (4 children)

based on proven reserves it looks like venezuela is gonna get canada'd harder than usual.

[–] Bloomcole@lemmy.ml 3 points 4 days ago

Ah yes, oil rich country.
What a coincidence they have all these coup attempts there.

[–] avidamoeba@lemmy.ca 2 points 3 days ago (1 children)

Hey buddy, we're not annexed yet!

[–] qprimed@lemmy.ml 2 points 3 days ago

elbows up, my friend. elbows up!

[–] lumony@lemmings.world 2 points 4 days ago (1 children)

Venezuela has the "dirtiest oil in the world."

[–] qprimed@lemmy.ml 3 points 4 days ago

we seem to like it dirty.

[...]our refineries were designed to process oil coming from Mexico and Venezuela. “And a lot of that tends to be relatively heavy and relatively high in sulfur,”

[–] ryannathans@aussie.zone 3 points 4 days ago

Everything requiring energy or fuel to produce or transport should get cheaper