Nearly two months after Trump drew a line in the sand on oil prices, when on April 20 he lashed out at OPEC, tweeting that “Oil prices are artificially Very High! No good and will not be accepted!”which promptly set a ceiling on crude and prompted Saudi Arabia to scramble to boost production…
Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!
… moments ago Trump doubled down on his oil- price targeting, and in a lengthy tweetstorm that touched on everything from Marc Sanford’s loss, to the strength of the economy, to the just concluded North Korean summit, his relationship with Kim Jong Un and the cancellation of war games with South Korea, even the announcement of the world cup host nation (US, Mexico and Canada), Trump once again lashed out at OPEC, tweeting that “Oil prices are too high, OPEC is at it again. Not good!“
Oil prices are too high, OPEC is at it again. Not good!
Translation: Trump realizes that the middle-class is spending increasingly more on gasoline, taking away from disposable income, and hopes that Saudi Arabia will pump more to offset the loss of Venezuela and Iran oil (which would not be impaired if Trump hadn’t killed the Iran deal), in line with what we described in “Rising Gas Prices Threaten To Wipe Out Trump’s Tax Cut Benefits“.
This time, the market reaction to Trump’s angry tweet was far muted, with oil barely moving – so far – after it slumped following yesterday’s API report, even if it recovered most of the losses.
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