• disguy_ovahea@lemmy.world
    link
    fedilink
    arrow-up
    10
    ·
    1 month ago

    Oh, so tariffs > higher costs > fewer purchases > smaller shipments > less fuel consumed > smaller oil margins > reduced oil production? It’s almost like economists know more about this stuff than a real estate fraud.

    • MrMakabar@slrpnk.net
      link
      fedilink
      English
      arrow-up
      7
      ·
      1 month ago

      It is not just tariffs, but also the Saudis pushing oil prices down. They have the lowest production price, so lowering the global oil prices gives them market share. US oil production is the one to loose. However the EU is going with sanctions against Russia, trying to force them to cut first. They much rather see the US keeping their current level of oil production.

      We will see, but low oil prices are good news. It means less money for lobbying. So the cheaper green alternatives gain market share.