Crude Oil Prices Plunge as Tariff Turmoil Threatens Global Energy Demand

May WTI crude oil (CLK25) Friday closed down -4.96 (-7.41%), and May RBOB gasoline (RBK25) closed down -0.1098 (-5.07%).

Crude oil and gasoline prices on Friday sank for the second day, with crude falling to a 4-year low and gasoline sliding to a 1-month low. Tariff turmoil undercut energy prices Friday after China retaliated against US tariffs by imposing 34% tariffs on US goods, escalating the global trade war that could derail the global economy and energy demand.

Also, a stronger dollar on Friday was bearish for crude. In addition, Friday's slump in the S&P 500 to an 11-month low undercut confidence in the economic outlook and energy demand. Crude also fell on negative carryover from Thursday when OPEC+ said it would increase crude production faster than previously announced. Continue reading here (Source: Nasdaq).

Why OPEC+ Is Accelerating Oil Production As Prices Are Tanking and Tariffs Hammer Markets

The oil price outlook is being hit with more bearish forecasts on the back of U.S. President Donald Trump’s sweeping and market-hammering tariff announcements. Businesses and investors worry that a trade war and lower global growth lies ahead.

Goldman Sachs on Thursday reduced its December 2025 forecasts for global and U.S. benchmarks Brent crude and WTI by $5 to $66 and $62 a barrel, respectively, “because the two key downside risks we have flagged are realizing, namely tariff escalation and somewhat higher OPEC+ supply.” Continue reading here (Source: CNBC).

More Pipelines, More Gas, Lower Prices?

The United States last year added the most pipeline takeaway capacity from natural gas-producing regions since 2021. This year, more gas pipelines could be announced or revived, with the support of the Trump Administration, in what could be a shot in the arm for U.S. natural gas producers and a step toward reducing energy costs for consumers, especially in the Northeast.

Five completed pipelines to deliver natural gas from the producing regions to demand centers in the mid-Atlantic and along the U.S. Gulf Coast, another five projects to boost feedgas capacity to LNG export plants in Texas and Louisiana, and several new smaller interstate and intrastate pipeline projects increased America’s natural gas pipeline capacity by a total of 17.8 billion cubic feet per day (Bcf/d) in 2024, data from the EIA showed this week. Continue reading here (Source: OilPrice).

US Natural Gas Consumption Set New Winter and Summer Monthly Records in 2024

In 2024, U.S. natural gas consumption averaged a record 90.3 billion cubic feet per day (Bcf/d) and set new winter and summer monthly records in January and July, according to data in our Natural Gas Monthly. Overall, U.S. consumption last year increased 1% (0.9 Bcf/d) from 2023. In January, natural gas consumption was up 12% (12.5 Bcf/d) compared with January 2023 consumption, and in July, consumption increased by 3% (2.5 Bcf/d) compared with July 2023.

Weather has a significant effect on natural gas consumption patterns. Natural gas consumption peaks in the United States in both the winter and summer. In winter, the most natural gas is consumed in January or February, when demand for space heating in the residential and commercial sectors peaks. In the summer, electricity generation increases in July and August to meet air-conditioning demand, driving more natural gas consumption. Continue reading here (Source: US Energy Information Administration).

Today's Gas Prices By State

Today’s average price of gas in the U.S. is $3.25 per gallon, down $0.01 from yesterday, up $0.04 from last week and up $0.15 from last month.

The average price of a gallon of gas one year ago today was $3.60. Continue reading here (Source: Forbes).

California Abandons Clean-Air Rules on Diesel Trucks

In a striking setback to reduce California’s air pollution but a win for trucking companies, state regulators have walked away from their ambitious plan to phase out diesel trucks less than a week before President-elect Donald Trump returns to the White House.

As CalMatters’ Alejandro Lazo explains, in 2023 the California Air Resources Board voted to ban the sale of new diesel big rigs by 2036 and require large fleets to convert all their trucks to zero-emission models by 2042. About 1.8 million trucks operate in the state. Continue reading here (Source: CalMatters).