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!— Donald J. Trump (@realDonaldTrump) April 20, 2018
... 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!— Donald J. Trump (@realDonaldTrump) June 13, 2018
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.
Perhaps what is more interesting is that the strike price on the "Trump Call" is declining, and from $69 at the time of his first tweet in April, the price of oil has since dropped to $66 when Trump slammed OPEC again.
Earlier, in European trade, oil broke back above the $66.00/bbl level in the wake of the IEA monthly report forecasting stable oil demand, as well as Iranian and Venezuelan oil output possibly falling by almost 30%. The fossil fuel is still negative for the day, however, at USD 66.20/bbl.
As a reminder, next week OPEC is set to meet and discuss a production boost of anywhere between 500K and 1MM bbls. Further news in the oil sector emanated from the Kremlin with Russian President Putin not planning to discuss an exit from the global oil output deal with Saudi Crown Prince at their World Cup meeting.