BATON ROUGE, LOUISIANA (Steve Stewart, Energy Analytics Institute, 5.Mar.2025) — US tariffs and sanctions have come to the forefront of oil markets and the global economy and oil demand could be impacted by imposition of tariffs and wider uncertainty, according to the Oxford Institute for Energy Studies (OIES) director Bassam Fattouh and OIES head of oil research Andreas Economou.
Alongside official announcements from The White House and others uttered by US president Donald Trump, shockwaves have been sent through US and international energy markets, they said 5 Mar. 2025 in a research report titled Trump 2.0 and Oil Markets.
“US allies and foes alike are braced for more volatility and uncertainty,” they argued.
And, the US supply response to Trump’s ‘Drill Baby Drill’ energy policy will likely to be limited, especially in 2025, according to the 2 OIES executives.
To this end, Fattouh and Economou said US shale producers are unlikely to sacrifice returns for the sake of output growth (especially in an uncertain environment).
“Unleashing of American energy signals a bolder US push to deploy energy as a key geopolitical and trade lever in global affairs,” they said. “[But], Trump 2.0 policies, which are transactional in nature and constantly changing are amplifying oil market uncertainty and at most times involve complete trade-offs and contradictory objectives.”
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By Steve Stewart reporting from Baton Rouge. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
