• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 2 days The United States produced more crude oil than any nation, at any time.
  • 2 days China deletes leaked stats showing plunging birth rate for 2023
  • 3 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 8 days Bad news for e-cars keeps coming
Demand Pessimism on Oil Market Dissipates

Demand Pessimism on Oil Market Dissipates

The pessimism that has gripped…

Oil Bounces Back on Rate Cut Optimism

Oil Bounces Back on Rate Cut Optimism

The market reacted positively to…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Premium Content

IEA Does Not Believe Steel Tariffs Will Affect Global Oil Trade

fracking rig

The International Energy Agency’s (IEA) leadership does not believe President Donald Trump’s tariffs on imported aluminum and steel will affect the global oil trade.

“I think the impact on the global oil markets will be limited if any,” Executive Director Fatih Birol told CNBC during the ongoing CERA Week conference in Houston. “We may see some impact. There is major infrastructure construction in Texas, lots of pipelines. We do not know the [tariff] proposal yet in detail, but if there are some cost implications, this may cause some changes in the plans. But I don’t see this causing major changes in global oil markets.”

He added: “We follow us oil production really closely. In 2009, we said a silent revolution is happening in the US and it will have a lot of implications. And we see now that the silent shale revolution is very, very loud. So, as a result of that we think in the next five years to come, the US will put its stamp in the global oil market.”

Birol added that the U.S. could begin producing up to 12 million barrels per day by 2023. Current production estimates by the U.S. Energy Information Administration (EIA) put national output at 11 million barrels per day by the end of 2019.

Steel and aluminum tariffs, while likely not a severe blow to the oil industry, would hike the cost of infrastructure projects in the energy industry, analysts say.

"The real question is whether the U.S. steel industry has the capacity to supply every pipeline project in the United States," said Libby Toudouze, portfolio manager at Cushing Asset Management, according to CNBC. "Let's say in 2017, 2018 we need 300 miles of pipeline, and the U.S. steel companies' maximum capacity could crank out 100 miles of pipe. It's not reasonable for us to hold up the 200 miles of pipeline because the U.S. guys can't scale to get there," she said.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News