Trump Slams OPEC Again, Demands Lower Prices: "Oil Prices Are Too High, OPEC Is At It Again"

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...

... 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!"

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.


bshirley1968 Mementoil Wed, 06/13/2018 - 09:14 Permalink

You mean do something that makes sense? You mean a "cause and effect" that doesn't make good headlines or buy someone off?.....Never gonna happen.

If the goobermint were to even slow down spending, this reanimated, zombie economy would quickly start to lock up and fall over. Goobermint spending IS the economy.

However, you are exactly right, dollar devaluation is driving up the cost of well as actual cost. As more alternatives come on line for purchasing energy, oil is going to get more expensive in dollars.

Plus there is "pricing power" in energy. Banksters have been bucking for inflation, and they are about to get it. As the article points out, higher oil prices hurt "consumer discretionary spending" and that will not help the Bankster's drive for higher prices....and when it comes to the choice between making a debt payment or a tank of gas and some cigs, loan sharks are out of luck.

In reply to by Mementoil

ravolla ll951983 Wed, 06/13/2018 - 09:53 Permalink

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ll951983  <<< NEWBIE  sucks cock on the Internet!
  <<<  NEWBIE
Cheoll   <<<  NEWBIE

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gzcekkyret     <<<  NEWBIE

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In reply to by ll951983

HockeyFool Wed, 06/13/2018 - 08:12 Permalink

Didn't 0bama say there is nothing anyone can do about oil prices?

I think at the time he was bowing down to some muslim pedophile to lick his shoes.

Dilluminati Wed, 06/13/2018 - 08:12 Permalink

Draw from the US strategic oil reserve and squeeze.. send the manipulators covering

Yawn... open the reserves and then replace with a higher quality and lower sulfur replacement

Dilluminati Expat Wed, 06/13/2018 - 08:23 Permalink

Under the Energy Policy and Conservation Act, “decisions to withdraw crude oil from the SPR are made by the President…SPR oil would be distributed by competitive sale.” President Bush agreed to sell up to 30 million barrels after Hurricane Katrina. The on-line sale of this oil ended September 9, 2005, and the first oil was delivered to oil companies for refining on September 26. More significantly, it reduced oil prices in a day (see #4).

You are an example of foolish.. the announcement would simply crush the positions

This is something Trump should do to MAGA and send a message to the market.. 

In reply to by Expat

Harry Lightning Dilluminati Wed, 06/13/2018 - 08:50 Permalink

If the demand exists to support oil at $65-$70 a barrel, would release from the SPR be anything but a short term fix ? I have read that daily oil consumption in the US is something like 20 million barrels per day. The total amount of oil in the SPR is about 700 million barrels, which amounts to about 35 days of US-only consumption. So if just 2 million barrels a day was released by the SPR, that would drop US consumption of global oil by 10%, and even if this translated directly to oil prices, it would lower oil to $60 a barrel from the present $66. Would it make that much difference to the US economy if oil is at $60 or $66 ? And for how long would the US continue this subsidy ? Can't be more than a year since the entire reserve would be depleted by then.

Seems to me that this kind of short term solution would not do much good. Either demand has to drop or the producing nations need to bring up more oil from the ground. Or the US would need to tap into the offshore oil on the left coast.

No easy solution to this. 

In reply to by Dilluminati

bshirley1968 Harry Lightning Wed, 06/13/2018 - 09:28 Permalink

No, there is no easy solution to this.

The US days are numbered in regards to cheap oil. We are no longer the only customer, and the rest of the world is growing up and wants some of that energy.

We use way to much energy for what we do with it. We are the biggest consumers of energy by far....and what do we do with it?....we consume! Or bomb the hell out of others.

More oil isn't going to fix higher prices. Hell, there is more Coca-Cola on the planet than ever in the history of the world, so why does the same Coke that cost me .25 growing up now cost $1.50? We could make that illustration a thousand times over. "Supply and Demand" doesn't work logically in debt ridden fiat society. Oil is just another tool of control and used to extract wealth...not build it.

Bottom line, I don't give a shit how much there is, if it has pricing power, then it will go higher. The debt monster has to be paid.

In reply to by Harry Lightning

Dilluminati Arnold Wed, 06/13/2018 - 08:34 Permalink

It is interesting that you said that.. but yeah we should spend on that infrastructure, align the market to MAGA and lead from a position of strength, and yes.. look at improving the grid and.. and SPR, the lower the amount of sulphur the less cost in energy to refine subsequently.. sell high.. buy low.. improve the quality of the SPR

In reply to by Arnold

Expat Wed, 06/13/2018 - 08:15 Permalink

Says the same ignorant asshole who is permitting lower fuel economies on cars in the US.

Fuck Trump.  he obviously has no clue about Korea.  He again has no clue about oil markets.  Of course, monopolies and protectionism should only apply to things that benefit the US.  Does he even know that it was illegal to export oil from the US only two years ago?  I doubt it.

Harvey's-Rabbi Wed, 06/13/2018 - 08:23 Permalink

this guy claimed he could drive from New York to the West Coast on 22 gallons of water, and this YT video shows him making good time down a highway in his water-;powered car. It also says that a Defense Department official was flying out to meet with him for possible incorporation of this discovery into Government operations. Stanley Meyer was found murdered shortly afterwards.