Oil industry experts predict a long-term decline in oil prices following a temporary spike caused by President Trump's tariffs on Canada and Mexico. While consumers will face higher gasoline and diesel costs in the near term, the increase is seen as short-lived due to potential global economic consequences and the shifting of oil supplies.
Oil prices are likely to fall in the longer run after the initial jump following President Donald Trump's implementation of hefty tariffs on Canada and Mexico, said industry watchers.
"While the initial move on crude oil is upward, a cycle of tariffs and retaliatory actions by Canada, Mexico, China and perhaps others in the future could lead to a worldwide recession, causing oil prices to plummet," Andy Lipow, President of Lipow Oil Associates told CNBC. Canadian oil producers will eventually bear the brunt of the tariffs' burden with a $3 to $4 per barrel discount on Canadian crude given the limited alternative export markets, Goldman Sachs wrote in a note dated Sunday.
OIL PRICES TARIFFS CANADA MEXICO GLOBAL ECONOMY
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