Iran Begs Trump: "Please Stop Tweeting, You're Driving Oil Prices Higher"

President Trump's tweets demanding that OPEC step in and "do something" to halt the inexorable rally in oil prices (i.e. pump more) have been notably ineffective, as crude has continued to push through highs not seen since late 2014. And after the president took some time off from the July 4 holiday to again demand that OPEC turn up the pumps (after Saudi Arabia poured cold water on its "promise" to pump an extra 2 million barrels a day), Iran - which has the most to lose from an increase in Saudi production - is now begging Trump to stop tweeting, arguing that his tweets are only serving to drive prices higher.

According to Bloomberg, Iran's OPEC governor Hossein Kazempour Ardebili issued a message to Trump, carried by the Iranian oil ministry's news service, begging him to stop tweeting at OPEC and claiming that the tweets are "discrediting" the organization. "Your tweets have driven the prices up by at least $10 a barrel," Kazempour said. "Pls stop it, otherwise it will go ever higher!"

"You are hammering on good guys in OPEC," Kazempour said. "You are actually discrediting them and undermining their sovereignty, we expect you to be more polite."

Kazempour also accused Trump of being a hypocrite by sanctioning OPEC members then trying to boss the organization around.

"OPEC has not defined oil prices for the past 30 years," Kazempour said. "You impose sanctions on major producers, founders of OPEC, and yet you are asking them to reduce the prices?! Since when did you start ordering OPEC!"

Come to think of it, the Iranian is right: after all the biggest driver behind the recent oil spike has little to do with structural supply and demand, but rather with Trump's latest Iran oil embargo, which the US is rushing to shove down allies' throats.

Which also means that Trump himself could easily reverse much if not all of the recent spike in prices by simply agreeing to the Iran deal and refusing to reimpose sanctions on Iran and lift sanctions on Venezuela. Though that likely wouldn't go over well with his base (not to mention Republicans in Congress).

Iran
Hossein Kazempour Ardebili

But there's another reason why Iran probably wants Trump to stop: Iran has an interest in Saudi Arabia keeping production as low as possible as sanctions kick in and Iran searches for buyers for its crude, which no longer can be paid for in dollars. And while Iran is likely sharing in the economic boost from higher oil and gas prices, the reality is that Trump's tweets have had only a muted impact on gas and oil prices, as Goldman Sachs (and most other banks) see supply risks surrounding Venezuela and Iran as the primary culprit.

Gas

But that likely won't stop Trump from accusing OPEC of being "up to something" when he needs a political whipping boy as higher prices at the pump squeeze American consumers and threaten to undo the economic benefit from the Trump tax cuts.

Saudi

To be sure, while Saudi Arabia has the capacity, pushing production to the limit would likely only briefly arrest the climb in prices while using up the buffer with which OPEC can respond to supply outages - meaning that any future outages would likely have an outsized impact.

Unless of course, there is a sharp drop in global oil demand, which could well happen if the economic slowdown in China accelerates, or if the PBOC is afraid to cut rates - as it will have to to prompt growth - over fears it is seen as trade war retaliation.

That said, Iran probably has the most to lose should Trump succeed in striking a deal with the Saudis: Not only is Trump trying to blame OPEC for a problem that he helped create, any agreement between the president and Iran would likely result in more market share going to the Saudis - Iran's geopolitical archrival - while lower prices would rob the Iranian economy of what little benefit it has received from the rally. Finally, while Saudi Arabia will pay lip service to Trump, it would never boost production by so much it splinters OPEC as everyone still remembers what happened in November 2014 when Saudi Arabia decided to go it alone, promptly sending the price of oil crashing from $70 to as low as $20.

So, in summary, don't expect either Trump or Iran to stop jawboning any time soon.

Comments

Jethro Buster Cherry Thu, 07/05/2018 - 10:29 Permalink

I think it is similar to what Martin Luther did.  Trump recognized the corruption, and took away the intermediary.  The media is largely useless.  Likewise, the Pope is largely useless (in practical terms.....but quite the expert on moving pedophiles from parish to parish to escape prosecution). Actually....the media kind of does the same thing....

In reply to by Buster Cherry

Scipio Africanuz Stan522 Thu, 07/05/2018 - 11:20 Permalink

If Bolton, Pompeo, and the Iran hating folks in the administration, and CONGRESS,  don't put the country first, they will have become the enemies of Americans!

If President Trump puts the interests of Adelson and Netanyahu before that of Americans, he will prove himself to be a hypocrite, undeserving of the support of lovers of the Republic, for did he not promise us friendly relations with ALL nations, and a Republican foreign policy?

If the nation of Iran has done the USA harm, then please please please, provide us the details, that we may judge for ourselves, and btw, unbacked assertions are not enough, we need solid evidence!

If ego, and the error of nullifying a reasonable agreement are the stumbling blocks, by all means, see the light, declare mea culpa, and reach out through reliable and trustworthy parties, to mend unnecessary rifts.

Every source of national income, right now, is as good as gold. It's madness to deprive the hemorrhaging Republic, of sources of legitimate business and coin!

As for the Senate that's rubber stamping dubious conclusions, of Russian meddling in US elections,  SHOW US THE EVIDENCE!!!...

In reply to by Stan522

DingleBarryObummer Thu, 07/05/2018 - 07:22 Permalink

Which also means that Trump himself could easily reverse much if not all of the recent spike in prices by simply agreeing to the Iran deal and refusing to reimpose sanctions on Iran and lift sanctions on Venezuela. Though that likely wouldn't go over well with his base (not to mention Republicans in Congress).

You mean that wouldn't go over well with Boss Bibi.

To Hell In A H… Thu, 07/05/2018 - 07:24 Permalink

Fuck Orange Jesus and the fabled American oil reserves. Pump your own fucking oil if you don't like the prices. This orange cunt complains of the poor old USSA paying for the world etc etc.

What will happen if nations pump more oil you sack of shit Rothschild servant? The price of oil will go down, generating less revenue for the oil country. Thus these nations if they pump more oil, will in effect be subsidising the price of oil, so USSA citizens can drive 8 litre SUV's, that do 12 miles a gallon, then bitch to their politicians that gas prices are too high.

It's about time the world learns to pay the real price of oil, on a supply and demand basis. Instead of the constant bitching by the USSA, when it can fucking print money and buy it for free. What is the government debt of the USSA? $22 trillion and rising. Fucking FREE SHIT nation. Live within your means.

Rant over.

BeansMcGreens overmedicatedu… Thu, 07/05/2018 - 08:00 Permalink

Oil is the biggest tax revenue generator this world has ever seen.

All those cars and trucks not only provide the tax on the fuel, but also taxes on tires, parts, labor here in NC, licenses, inspections, insurance, the list goes on. Most of us have two or more vehicles.

Ever see any State Dept. Of Transportation workers go on strike or complain of wages.

In reply to by overmedicatedu…

To Hell In A H… overmedicatedu… Thu, 07/05/2018 - 13:58 Permalink

What aid? It is idiots like you that believe USAID is done for altruistic reasons. After the 2008 crash and the UK introduced austerity measures, we cut the budget of every single department except one. The Department for foreign aid and development. 

Granted I was once a Kipper brain like you on the foreign aid issue and use to scream and moan, pleading for the UK government to stop giving the 3rd world especially niggers any aid. That was until the Tanzania/British aerospace/Radar scandal broke in 2002. That is when the shit hit the fan and freedom of information requests truly backfired for .gov. The deal was so rotten, the World bank had to step in. The world bank you ask? Why would the world bank be involved on an issue regarding UK aid given to Tanzania? Because you believe the fucking headlines and propaganda and have no idea how aid is really structured.

It was this scandal that revealed to many people, how aid is given and structured and the terms the UK and E.U aid give to the 3rd world, was exposed like a gangrene foot and the reality was as ugly and self-serving as fuck. The reality left me feeling like a used and brainwashed fool on the issue. I was completely fooled on the issue, becaue my own biases allowed me to be fooled.

The fact Kipper brains like you in 2018, talk about aid in terms of a net loss to the USSA, shows you are an ignorant fool on the issue, like I once was and a complete simpleton on the subject matter.

What we give in aid, we receive 10x back, but alas the MSM won't talk about that. No, and do you know why? Because by any definition we are net beneficiaries the way aid is structured.

Only Israel, Pakistan and a few other countries receive true aid, where the USSA believes it has benefit and a sort of quid pro quo. Money for geopolitical picking of sides, hosting USSA geostrategic bases on their soil etc. No altruism is involved. The other side of aid is bribery money and a greasing of the palms, easing the access of USSA companies to conduct business and the kickback of aid projects. How the fuck do you think companies like Bechtel made so many of its billions? 

The typical UK aid given, stipulates the money has to be paid back(That's term #1)  The money must be spent on certain projects(That's term #2) The projects must be carried out by British businesses(That's term #3)

So 9 times out of 10 when foreign aid is given to foreign countries, the money must be paid back and the projects can only go to British companies who regularly employ British workers(with 5-10% sub-contracted work going to local companies). That's how foreign aid works, that's why we increase it every year.

The benefit to the country receiving the aid? Do you have time to read a book on this matter?

 

 

In reply to by overmedicatedu…

Bill of Rights DingleBarryObummer Thu, 07/05/2018 - 08:05 Permalink

" I think " Oh really since when?...and ill say this to you one time and one time only just so you understand where I stand, don't fucking tell me what I can and cannot do or say got it, I owe you shit, don't care what you think, say, or feel, and ill say what I want when I want.

 

I hope Ive made my self clear with you, and by the way Id tell you that to your face as well, not a problem, so spare me the internet thing.

In reply to by DingleBarryObummer

Sinophile Thu, 07/05/2018 - 07:25 Permalink

...... refusing to reimpose sanctions on Iran and lift sanctions on Venezuela. Though that likely wouldn't go over well with his base ......BOLTON is not his base, shithead author whomever you are.  NO FOREIGN ENTANGLEMENTS!!!!!!!!!!!!!!!!!!

shovelhead Sinophile Thu, 07/05/2018 - 07:53 Permalink

The sanctions on Venezuela are that US citizens or agents can't buy their debt.

He's doing US dumbshits a favor. Let any other idiot buy their debt and see what happens. Money ain't gonna get that oil out of the ground and to market, only expertise in the oil business can do that and Maduro insured that disappeared with his extortion schemes against oil producers.

In reply to by Sinophile

Obamanism666 Thu, 07/05/2018 - 07:27 Permalink

So Is President Trump to "Make Iran Great Again"? Another one of Obama policies destroyed.

BTW the best sabotage in WWll was done by an old French railway worker on the German French Border where Trains went North to South and East to West. The worker would change the destinations of the cargo while the trains where waiting in the Junctions. He was never found out. Listen to Leonard Cohen Never Mind:

https://www.youtube.com/watch?v=N3HbrfV0hJM

CPL Thu, 07/05/2018 - 07:35 Permalink

Actually the shortages are due to labour doing the mining for oil since the oil game is closer to mining now plus they've drilled too long. 

rejected Thu, 07/05/2018 - 08:12 Permalink

"To be sure, while Saudi Arabia has the capacity, pushing production to the limit "

My research indicates otherwise. They're running out of capacity. 

If they want to destroy their producers to keep Trump happy they might get close for awhile. Let's just see how smart out head chopping buddy's are.

Obviously Tyler, Trump and many others haven't a clue on oil production. 

Actually he will be helping Iran in that lowering production will extend the life of their reserves. Iran, unlike our head chopping allies are not locked into oil. They have other resources. As the US is no longer the largest user of oil its pull in world markets is getting smaller by the day. 

And it would be nice if the Trump people that agree to his shenanigans could tell me how higher gas prices will MAGA.