Trump’s push for cheap oil faces roadblocks

As US President Donald Trump’s administration seeks ways to manage rising inflation, oil prices have emerged as a key focus. 

Experts say that some of Trump’s advisers now see controlling oil prices as an essential anti-inflation strategy, an effort to reduce inflationary pressures, particularly on consumer goods, where transportation costs play a significant role.

Trump’s oil strategy: A temporary fix?

Lower oil prices, they argue, could help offset the impact of other inflation-driving policies, such as tariffs. However, this approach is not without its contradictions. Trump has long promoted increasing US fossil fuel output to reduce reliance on OPEC and assert greater geopolitical control. 

But experts caution that efforts to lower oil prices may alienate vital oil-producing allies, especially Saudi Arabia. Moreover, domestic shale producers, facing an uncertain future due to fluctuating oil price expectations, have already scaled back investments, creating a dilemma for the administration. 

The Dallas Federal Reserve’s recent survey highlighted that shale firms are hesitant to increase production, fearing the potential of sub-$50 oil prices. Global geopolitical tensions add another layer of complexity.

Instability in West Asia—exemplified by recent attacks and rising tariffs—can lead to unpredictable surges in oil prices, complicating trump’s plans to manage inflation via lower energy costs.

Critics argue that while lower oil prices may provide temporary relief for consumers, the broader inflation problem requires more than just fossil fuel policies.

(With inputs from the agencies)