1138 GMT - U.S. President Trump's proposed 25% tariff on steel imports could increase shale producers' costs by 3%, DNB Markets' Helge Andre Martinsen and Tobias Ingebrigtsen say. U.S. shale producers rely on steel for drilling rigs, pipes and other equipment necessary for extracting oil and gas. A tariff would increase their costs and make it harder to maintain profit margins. Higher costs could also increase the break-even price--the price of oil at which producers cover all their expenses--by more than one dollar in the Permian Basin, putting pressure on margins for cost-sensitive barrels, according to the energy analysts. (giulia.petroni@wsj.com)
(END) Dow Jones Newswires
February 26, 2025 06:38 ET (11:38 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.