North Dakota oil regulator expects decrease oil costs this 12 months amid Trump tariff uncertainty

By Georgina McCartney

HOUSTON (Reuters) – Oil costs will possible slip this 12 months, the director of North Dakota’s state oil regulator predicted, amid uncertainty surrounding U.S. President Donald Trump’s tariffs on neighboring Canada and Mexico.

North Dakota is the third-largest oil producing state within the U.S.

U.S. crude futures have been buying and selling under $70 a barrel for the final three weeks, in line with information from LSEG, with investor sentiment partly quashed by uncertainty round potential commerce tariffs.

“I count on a softer oil value surroundings than in 2024,” mentioned Nathan Anderson, director of the North Dakota Division Of Mineral Sources.

“I believe the Trump administration is doing issues with tariffs and sanctions, and there is quite a lot of motion occurring proper now so I am not shocked by the decrease oil value,” he added.

“I count on if the worth dips low sufficient the federal authorities would possibly take into account rising enter into the Strategic Petroleum Reserve, and that will most likely set the ground for oil costs,” Anderson mentioned.

In 2022, then President Joe Biden’s administration introduced a sale of 180 million barrels of oil, the most important ever SPR sale, in an try to decrease gasoline costs after Russia invaded Ukraine.

In the meantime, there are at present 12 lively frac crews in North Dakota, regular on the month, in line with the state regulator.

Oil manufacturing within the state fell 20,000 barrels per day (bpd) to 1.172 million bpd in January, month-to-month information from the state Industrial Fee confirmed.

“We attribute that to a chilly spell in January, after which I’d count on February, because of its very chilly temperatures, to have related outcomes,” mentioned Anderson.

The rig rely and completion exercise in 2025 thus far has been regular.

In the meantime, Bakken oil delivered at Clearbrook, Minnesota, was pricing at an 80 cent per barrel low cost to West Texas Intermediate on Friday, the state regulator mentioned.

(Reporting by Georgina McCartney in Houston, modifying by Deepa Babington)