Crude Oil Plummets Under Trump's Tariffs A Vulcan Analysis!

Fascinating Fall of Crude

Greetings. Spock here. I find myself reporting on a rather…predictable if illogical situation. United States crude oil experienced a decline of approximately one percent today. A reduction if you will of 0.99% bringing the price down to $60.89 per barrel. Brent crude also succumbed falling 0.66% to $64.33. One might say 'Fascinating,' were one prone to hyperbole. I am not. This downward trajectory correlates with OPEC's revised forecast for crude oil demand a revision influenced by the… unpredictable policies of President Donald Trump. His tariffs it seems have had an effect a rather obvious one I might add.

OPEC's Logical Deduction

OPEC now projects a demand growth of 1.3 million barrels per day for this year and the next. This represents a decrease of 150,000 barrels per day from their previous estimates. It appears even the members of OPEC entities typically associated with shall we say 'colorful' decision making have recognized the potential impact of these tariffs. Logic dictates that when economic activity is…impeded…demand for resources tends to diminish. This is not rocket science though I am quite proficient in that field if I may add.

A Brief Respite Illogically Provided

The price of oil briefly experienced an increase of nearly 2% earlier in the day. This anomaly was attributed to President Trump's decision to exempt certain technological products such as smartphones from the aforementioned tariffs. A somewhat illogical move. One might even call it…human. As my father would say 'Only Nixon could go to China'. Apparently only Trump can exempt smartphones amidst a tariff war. The irony while…present is not particularly stimulating.

The Sword of Damocles…or Tariffs Hanging Overhead

President Trump has shall we say 'slapped' tariffs upon China while offering a 90 day reprieve for most other nations to engage in negotiations. Whether this is a calculated maneuver or a random act of…diplomacy…remains to be seen. It's like a game of three dimensional chess except one of the players appears to be improvising based on… gut feeling. Highly illogical.

The Enigmatic Secretary Wright

U.S. Energy Secretary Chris Wright has suggested that President Trump could halt Iran's oil exports should a nuclear agreement not be reached. This is… a bold statement. The United States and Iran engaged in preliminary talks in Oman and are scheduled to meet again on April 19th. Negotiations that have not happened for a long time. Perhaps they are merely attempting to resolve the matter through logic and diplomacy. Or perhaps they are engaging in a complex dance of… brinkmanship. Time will tell. As my esteemed colleague Dr. McCoy would say: 'It's life Jim but not as we know it.'

Recession Fears: Highly Contagious

Oil prices have decreased by more than 14% since April 2nd following President Trump's tariff announcements. This decline is in part attributed to growing fears of a recession. These fears much like the common cold appear to be spreading rapidly. Goldman Sachs in a recent report projects West Texas Intermediate and Brent crude to average $59 and $63 per barrel respectively for the remainder of the year. These projections are based on logical analysis. Of course even the most logical projections are subject to change in the face of… human unpredictability. Live long and prosper…or at least attempt to maintain a stable economy.