Oil prices have dropped significantly since the start of January, with West Texas Intermediate falling from around $80 per barrel to under $60. This decline is not due to increased U.S. production but rather a combination of factors. Tariffs are creating economic uncertainty, potentially slowing global oil demand. Meanwhile, OPEC+ has decided to increase production, contributing to the price drop. Although lower oil prices benefit consumers by reducing gasoline costs and lowering shipping expenses, they negatively impact oil producers. U.S. producers, in particular, are struggling as prices fall below profitable levels. Analysts predict that U.S. onshore oil production may have peaked and could begin declining this quarter. This situation contradicts President Trump’s vision of a booming U.S. oil industry, highlighting the tension between promised low prices for consumers and a thriving oil sector.
— new from NPR
