Gas prices coming down due to recession fears, foreign production, not Trump’s drill-baby-drill promises

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Petrol prices are falling, and President Donald Trump is happy to take it. Experts say that it is little concerned, and its policies are already more expensive to increase domestic oil production than record levels.

The price of a barrel of Western Texas Intermediate, which is a US crude oil benchmark, is 11 % lower than the next day after Trump took power. Petrol prices have not diminished so fast, but they are approaching $ 3 per gallon. According to the AAA, the national average for a regular gallon is $ 3.08, when Trump took power, it decreased by about 2 % but about 10 % a year ago.

He gave remarks at the Oval Office on Wednesday, “One of the great things I am very happy with is less oil.” “We’re taking it down. When the energy comes down, prices are coming down with it. So in a very short period of time, we have done a great job.

And the rest of the presidential administration are desperate to support their claims, White House senior councilor Peter Navaro said Trump’s policies were created. A decrease in the cost.

“In this case, it is ‘drill, babe, drill’,” Navro told CNN this week using Trump’s election slogan. He predicted that oil prices could be reduced by $ 50.

But the United States was producing more oil than any other country before Trump took power. The level of production of this record does not appear to be too much, despite the new administration’s new administration’s drilling policies.

Energy Information Administration (EIA) is predicting an average of 13.5 million barrels of oil daily in 2025, which is 200,000 barrels a day from 2024. But who had reached the pace during the last three months of Biden’s presidency.

“The EIA is showing the EIA showing that the level we have targeted in the fourth quarter is now being surfaced in the fourth quarter,” said Andy Lipo, an independent oil analyst.

EIA’s of The prediction for 2026 is just a day for a narrow addition. And Nevertheless, Lipo said, domestic production is not something that reduces prices.

The recent drop in prices is due to the classic imbalance between supply and demand, rather than expectations of Trump’s powered increase in domestic oil production, Lipo said. A group of major oil exporting countries announced plans earlier this month to increase production over the next 16 months. Lipo said, and there are signs of weak oil demand on the horizon, especially in China.

But if the price of oil decreases significantly, it can slow down the production, because Lipo added, because American oil producing oils cannot make a profit that is very cheap for their balance sheets, leaving Naro’s $ 50 price target anywhere.

“From the producer’s point of view, they need a barrel of about $ 70,” said Lipo.

Promises to reduce Trump’s oil industry rules can reduce the price that producers also need to break, but not enough to promote production. And Producers’ costs on imports of foreign steel imports will increase on Wednesday, Lipo said.

“The drill babe drill is about to grow, especially through the oil used in oil,” he said. Even domestic steel prices are likely to rise, as US steel companies take advantage of the decline in competitiveness. Overall US Spot Steel Prices Cabinet steel analyst Phil Gabus said the impact of revenue in the past two months is more than 30 %.

A CNN survey released on Wednesday said that the majority of Americans now refuse to deal with Trump’s economy, and even more percentage says it is not working enough to deal with high prices that have helped him win last year’s elections.

Consumer Prices Index report on Wednesday, the government’s key steps in inflation shows that low gas prices are helping to cool down the overall pressure of prices. But many consumers, economists and businesses have concerns that Trump’s tariff policies can soon lead to an additional increase in prices.

Lipo said recession is feared – which has been mostly accused of the recent stock rise – perhaps yet oil is not yet operating, partially because oil is traded globally, not just based on demand for one country.

But if a lazy American economy, or an American or global recession, is the real beginning of the beginning, which will send petrol prices faster and faster. The recession of 2020 was given by Covade 19 pandemic diseases Also, the major recession of 2008 and 2009 resulted in the drops of petrol prices.

“If we get bad news that we are going to recession, the good news will be that the national price will fall below $ 3,” said Lipo.