Trump tariffs could lead to the gas prices fall

The crude oil prices have been at the lowest level for four years after President Donald Trump announced the tariffs for US trading partners, which benefits consumers nationwide at the tap pump, according to experts in the energy industry.

The US raw oil -futures acted by around 61 US dollars per barrel on Monday at 11 a.m. after they used to fall below $ 60 per barrel.

“The silver strip from the latest market turbulence is that the significant decline in oil prices will lead to a decline in gasoline prices for the consumer,” Andy Lipow, President of Lipow Oil Associates, told Fox Business.

The price of crude oil is the biggest factor for the retail price of gasoline and makes up more than half of the total costs that consumers pay at the pump.

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Refineries have switched to summer mantle fuel, what to produce more expensive than in the winter degree fuel, and usually prices to jump on the pump. According to Lipow, however, consumers will not recognize the full effects of this change at the petrol station

Refineries have switched to summer coat fuel, which produces more expensive than in winter degrees. (Daniel Acker / Bloomberg about / Getty Images)

The senior analyst and Fox Business Network employee of the Futures Group, Phil Flynn, said that raw and gasoline prices do not always drop linearly, but this decline should increase the usual 10 to 15 cents per gallon when consumers usually see when the industry changes to summer petrol blends.

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The summer petrol blends will initially be cheaper, and if the oil prices remain low for a long time, Flynn said that consumers “could see the cheapest summer for petrol prices since President Trump has been in office or since Covid.”

Lipow estimated that the gasoline prices will decrease this week. In the coming weeks there will be a decline of 15 cents per gallon, Lipow estimated.

A customer pumps gas at a station in Connecticut. (Fox Business / Daniella Genovese / Fox News)

In addition, Opec+decided to recover its production cuts in May, which is more supplied with a market that is “concerned with slow growth due to higher tariffs,” said Lipow, adding that this is another good sign of oil prices and consumers.

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Flynn said the amount of benzine on Easter holiday would be a good snapshot of the overall consumer.

“We will see how the average American is influenced by volatility on the stock exchange,” said Flynn. The US shares liked the tariff announcement last week.

If the weather is nice and the gasoline price is cheap, Flynn expects: “We will see a big jump in consumer confidence as long as people do not look at their 401 (K).”