CNBC's "Fast Money" Oil Drops To 4 Year Lows… And Hollywood’s Tariff Threat 5/5/25
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May 5, 2025 Paul Sankey, President and lead analyst at Sankey Research, dives deep into the oil market as prices hit four-year lows. He predicts a price drop to $40 per barrel and discusses the need for reduced U.S. production to restore balance. The conversation also shifts to Hollywood, where Sankey addresses President Trump's potential 100% tariff on overseas films and its looming impact on streaming giants like Netflix. Insights into Ford's unexpected earnings amid these tariff challenges add another layer to this engaging discussion.
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Oil Price Shock Insight
- Oil prices may fall to around $40 per barrel to force shut down of U.S. unconventional production.
- This market share war driven by OPEC+ output increases could severely impact U.S. oil industry balance.
Refiners Benefit from More Crude
- More crude oil from OPEC is beneficial for refiners if demand holds steady.
- Gasoline pump prices are likely to decrease heading into the driving season as wholesale prices drop.
Trade De-escalation Outlook
- U.S. Treasury Secretary expects substantial progress on trade de-escalation with China soon.
- The U.S. holds leverage in the trade fight, with China more economically hurt by embargoes.