Home / Business / Trump Disoriented Oil Markets

Trump Disoriented Oil Markets



The US president demands lower gas prices for US consumers and puts pressure on producing countries. But foreign policy helps drive up oil prices

 Saudi Crown Prince Mohammed Ben Salman and US President Donald Trump in Washington DC on March 20.

plays Donald Trump? The US president has urged Tweet – and insistent calls – oil producing countries to increase production to lower prices globally. But his own foreign policy is canceling much of his action. On Tuesday, prices flirted with the $ 80, one of the highest levels in three and a half years.

Donald Trump seems to interpret two contradictory scores. "The Trump administration wants low gas prices for political reasons, but also wants to maximize the impact of sanctions on Iran. Trump is trying to win on both counts "says researcher Samantha Gross in a note from the Brookings Institution. "But the shares that pull barrels of oil from a tense market have repercussions at home, despite the rise of the United States as a major oil producer.

The US president has multiplied in recent weeks, very aggressive releases against the oil cartel. "The monopoly of OPEC must remember that gas prices are rising and they are doing very little to help. It pulls prices up while the United States defends many of its members in exchange for very little dollars. It must be giving and giving. Lower the prices now! so tweeted the US president on July 4.

At the end of June, in Vienna, the OPEC countries and their allies had yet executed. They have increased production, despite their difficult internal debates. Saudi Arabia, Washington's loyal ally, then sought to reassure the markets and the US president by ensuring that the country would achieve the necessary increase in production.

A succession of production losses

In June, Riyadh produced more than 10.5 million barrels …


Source link