From Yahoo Finance: 2025-04-14 17:00:00

President Trump’s tariffs caused WTI crude prices to drop to the low $60 per barrel range. A temporary 10% pause on new levies for 90 days provided some relief. However, US shale players face challenges with breakeven prices around $62.50 due to corporate costs. The Permian Basin drives most of US oil growth, but lower prices could threaten production.

Oil executives are concerned about Trump’s trade policies, impacting industry sentiment. US shale players forecast modest growth in 2025, with most growth expected from the Permian Basin. However, uneven acreage distribution and high dividend promises could be at risk if prices remain low.

US oil producers face an “all-in” corporate cash flow WTI breakeven around $62.50 due to additional corporate costs. With lower prices, US production growth in 2025 could slow, risking activity levels, investor payouts, and inventory preservation. Trump’s policies aim to lower prices but may hinder production, affecting the industry’s business model.

US oil production faces risks with prices below $62.50, threatening growth in the Permian Basin. Trump’s policies aim to lower prices and boost production but have caused price drops. US producers may need to adjust activity levels, payouts, or inventory to maintain margins. Different companies will be impacted differently, with activity and production at risk.



Read more at Yahoo Finance: Lower Oil Prices Threaten Permian Basin Growth