How much will the price of oil be if the U.S. shuts down?
The price of crude oil will soar after President Donald Trump signs a $1 trillion pipeline bill that would put a cap on U.K. output, a key component of the country’s recovery from the oil price collapse.
“We’re going to have a price of $110,” Exxon Mobil CEO Rex Tillerson said on CNBC Tuesday.
“The price of Brent will be about $60.
It’ll be $80.
It’s just crazy.”
The cost of crude in the U.-Korea Free Trade Agreement talks that ended last week in Seoul, South Korea, will fall to around $40 per barrel.
That will leave crude at around $70 to $80 per barrel if the United States shuts down production, a prospect that would be devastating to oil markets.
The cost is expected to hit $70 by the end of next year, according to an Energy Information Administration (EIA) estimate, which assumes no other cuts or increases in U.N. greenhouse gas emissions.
Oil futures have been trading below $50 per barrel for several months, and they were down nearly $2 per barrel this week.
The price drop is partly because of a new pipeline from Texas to the Gulf Coast, which will have a capacity of just 2.6 million barrels per day by the middle of 2018.
The new pipeline has been delayed for more than a year.
The Trump administration has already threatened to halt imports of crude from the U