Dived oil prices puts us production of oil rock in danger

Executive officials have warned that oil producers in the United States are facing their most threats for years, and that a sudden sale of prices caused by the trade war Donald Trump has pushed parts of the sector to the brink of failure.

we Oil prices It has decreased by 12 percent since the “Tahrir Day” tariff was declared in Trump last week, making them less than the level. Many producers in Texas say they need to break – and raise fears that the industry may be forced to lethargy.

OPEC’s decision to raise production also raised alarm bells.

Kirk Edwards, head of Latigo Petroleum, an independent product in Odessa, Texas, said, indicating the collapse of the 2020 price that brought a wave of bankruptcy across O oil rock sector.

Then, also, Oil markets They were facing dual threats to low demand and new supplies from OPEC producers such as Saudi Arabia, which last week announced a plan to increase supplies faster than expected in the coming months.

“We are facing a double sensation again,” said Edwards.

Bill Smid, chief investment official at Smead Capital Management, who has shares in many rock producers, said the war of tariffs has created “bloody chaos” that risks investors from oil and gas companies.

He said: “Trump wants the price of oil to decrease to 50 dollars and you will end up with half the number of companies in the industry if that happens.” “This will lead to integration and purchase, while capturing the weakest players.”

The sale of oil in recent days was exciting-and comes alongside the huge turmoil in global stock markets that resulted in Trump’s decision to launch a global trade war.

The US President said on Wednesday that he was retreating from the harshest fees he planned, sending stock markets sharply up. Oil prices also rose, as Marker West Texas Media reached $ 63 a barrel on Wednesday – but remains in a good situation this year and deep in the danger zone for many producers.

Analysts said that Trump’s decision to leave the customs tariff for China – the largest oil importer in the world – will continue to loom on the horizon due to the prospects for global crude demand.

“There have been a lot of fixed expectations for the growth of oil demand this year.. I think they are all in the box. “

At less than $ 60 a barrel, many American oil producers will face the transfer of profit, especially in some aging basins in the country, forcing them to stop drilling, put drilling platforms and allow employees to leave.

Rystad Energy said that many American rock producers faced a $ 62 tie cost of a barrel of WTI when debt service and profit payments were included.

The possible demand shock by the concerns that the Kingdom of Saudi Arabia, one of the least expensive producers in the world, could prepare to take a new step for the market share by pumping more oil and allowing price tree, forcing the competitors to get out of the business.

OPEC decision to add 400,000 barrels of oil per day to global supplies has pressured crude prices even before Trump’s trade war.

The turmoil also sparked a sale in shares of rock producers, which faces higher production costs of traditional oil digging. Occidental Petroleum and Devon Energy have lost more than 12 percent of its value in the five days since Trump announced the “mutual tariff”.

The accident is not on the same range in 2020. Then, the American standard was circulated for a short period of time as Bob Covid-19 required global demand-to send oil rock industry to a deep freezing and cause job losses such as dozens of bankruptcy companies.

But the industry has organized a wonderful recovery since then, as Wall Street forced the producers to repair public budgets and avoid drilling expensive drilling. Analysts say the new era of capital discipline has left the producers in a better condition to deal with a new contraction.

American oil production has recovered since the shock of 2020 and recorded a record of more than 13 million barrels per day in 2024.

But analysts who expect the country to reach larger folders this year are now wandering in production expectations, with the first production of production now.

The S & P Global Commodity Insights said this week that $ 50 of oil could cause production to decrease by more than 1 million B/D – which is far from the Trump administration’s goal of rapid product growth to reduce US gasoline prices.

Many American oil executives have supported Trump in the elections last year, but they are reeling from the price of the price since he entered his post. Some executives have grown in the White House energy strategy.

“This administration is the best plan for the @Sucastra plan,” Kais van Hoff, president of DiamondBack Energy, said in a social media post this week, which aims for Energy Minister Chris Wright. “The only industry built itself in the United States, manufactured in the United States, has grown jobs in the United States and improved the trade deficit (and my gross domestic product) in the United States over the past decade … smart step.”

Van’t Hof did not respond to the comment.

Adrian Carrasco, the owner of Premier Energy Services, which is based in Midland Odyssea, said he was not panic because many rock producers had surrounded the price of oil they sold for six to 12 months. But he said that the definitions will raise the costs of industry.

“It is anxious, because their prices now rose by 25 percent to buy drilling pipes. When this rises, the price of its purchase of oil does not rise, well, you have to control it.”