U.S. Tariffs to Have Minimal Long-Term Impacts on Oil and Gas Markets

SEATTLE (Oil Monster): The tariffs imposed by the new Trump administration is expected to have minimal impact on oil and gas prices in the long-term.

Global oil output and demand are probably going to stay the same. It is anticipated that the market would swiftly return to normal, notwithstanding possible temporary hiccups. It should be mentioned that the tariffs that went into effect on February 4, 2025, caused a brief increase in the price of gas and oil. The other export routes are probably going to keep price swings to a minimum in the future.

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Throughout the current year, it is anticipated that the average price of WTI and Brent crude oil will be $75 and $78 per barrel, respectively. Strong output and demand are predicted to keep the markets steady.

It is unlikely that the tariffs will have a major effect on U.S. gas prices due to the possible decrease in Canadian natural gas imports into the United States. However, cross-border energy trade between the neighboring nations would decline as a result of the tariffs, particularly in natural gas.

Meanwhile, limited alternative markets may see Canadian crude at a discount of $3-$4 per barrel, which may badly impact Canadian producers. The U.S. is expected to replace imports from Canada with crude from other regions such as Latin America, OPEC countries and the countries in European region.