Oil Prices Fall Below $60 as Market Reacts to Trump’s $2 Gas Pledge
Oil markets saw a sharp downturn on Friday, with West Texas Intermediate (WTI) crude slipping beneath the $60-per-barrel mark for the first time since May 2025.
The decline comes just a day after President Donald Trump reaffirmed his administration’s goal to bring U.S. gasoline prices down to $2 per gallon.
According to data shared by The Kobeissi Letter, WTI crude dropped to around $59.75 per barrel, marking a 2.83% intraday decline. The fall extends a weeks-long downward trend fueled by rising U.S. inventories, easing geopolitical tensions, and growing expectations of an economic slowdown in major economies.
Analysts suggest the President’s remarks may have accelerated bearish sentiment, as traders interpreted them as a signal of potential policy moves aimed at boosting domestic energy output. Some market observers also point to the possibility of strategic reserve releases or broader production incentives as contributing factors to the sharp sell-off.
Meanwhile, energy equities followed the slump, with oil majors and exploration firms seeing moderate declines during early U.S. trading hours. Brent crude futures also mirrored the movement, hovering near $63 per barrel.
The last time oil traded below $60 was in late spring 2025, when fears of weakening global demand pressured commodity markets. While consumers may welcome cheaper fuel in the near term, industry insiders warn that sustained price weakness could lead to reduced capital spending and slower investment in future production capacity.
As energy markets digest the implications of Trump’s remarks and shifting supply-demand dynamics, investors are bracing for heightened volatility heading into the final quarter of 2025.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
