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[dolabla]

https://economictimes.indiatimes.co...brakes-on-oils-rally/articleshow/64336412.cms

The world’s largest oil exporter just made quite a policy swerve. Within six weeks, Saudi Arabia has gone from advocating higher prices to trying to stop the rally at $80 a barrel.

The U-turn scrambled the outlook for oil markets, hit the share prices of oil majors and shale producers and set up a diplomatic wrangle with other members of the Organization of Petroleum Exporting Countries.

What changed? The supply threats posed by the re-imposition of US sanctions on Iran oil exports earlier this month and the quickening collapse of Venezuela’s energy industry are both part of the answer, but they’re secondary to Donald Trump. On April 20, the president took to Twitter to lambaste the cartel’s push for higher prices. "Looks like OPEC is at it again," he tweeted. "Oil prices are artificially Very High!"

Trump’s intervention gave typically strident voice to a concern held more widely in the U.S. and other consuming countries: oil’s rally from less than $30 in early 2016 to more than $80 this month risked becoming a threat to global economic growth.

On Friday, Saudi Oil Minister Khalid Al-Falih responded, saying his country shared the "anxiety" of his customers. He then announced a shift in policy that all but gave a green light for a market sell-off, saying OPEC and its allies were "likely" to boost output in the second half of the year.

"The tweet moved the Saudis," said Bob McNally, founder of consultant Rapidan Energy Group LLC in Washington and a former White House oil official. "The message was delivered loud and clear to Saudi Arabia."

After Al-Falih’s comments, made following a meeting with his Russian counterpart in St. Petersburg, saw crude drop more than $3 to below $67 a barrel in New York on Friday. The bullish tone of recent market chatter, increasingly punctuated with talk about oil prices climbing past $100, $150 and even $300, suddenly looks overdone.

OPEC officials were in a meeting at the opulent Ritz-Carlton hotel in Jeddah on Saudi Arabia’s Red Sea coast when Trump tweeted his views and they immediately saw it as a significant intervention.

"We were in the meeting in Jeddah, when we read the tweet," OPEC Secretary General Mohammad Barkindo said on Friday. "I think I was prodded by his excellency Khalid Al-Falih that probably there was a need for us to respond," he said. "We in OPEC always pride ourselves as friends of the United States".

Diplomats and oil officials in OPEC countries were also worried about the potential revival in Washington of the so-called "No Oil Producing and Exporting Cartels Act," which proposes making OPEC subject to the Sherman antitrust law, used more than a century ago to break up the oil empire of John Rockefeller.

 

[womfalcs3]

I was thinking if his tweets may have had to do with it:

"We were in the meeting in Jeddah, when we read the tweet," OPEC Secretary General Mohammad Barkindo said on Friday. "I think I was prodded by his excellency Khalid Al-Falih that probably there was a need for us to respond," he said. "We in OPEC always pride ourselves as friends of the United States".

 

[dolabla]

And some people say he needs quit tweeting .

 

[mckmas8808]

Will people keep following this story 2 months from now when the Saudis pump the oil rally back up? And it's weird that the author gives more credit to Trump's tweet, than the new sanctions that are coming down on Iran and the collapse of Venezuela’s energy industry. The Saudis stated that they want to have a healthy oil market and those two things would hurt it going forward. Remember Saudi Arabia and Russia need oil money to finance their governments. They can't allow the oil market to get out of wack.

Or it could have been a simple Tweet that happened on a Thursday. Take your pick.

 

[Dontero]

Honestly speaking from POV of US high oil prices are music to south ears. Part of reason why prices fell in first place was because US became 1st oil producer thanks to fracking for a while. Business gone down due to lowered prices but once those prices will be up fracking will go back.

 

[llien]

Will people keep following this story 2 months from now when the Saudis pump the oil rally back up?

Good question, but at least on neogaf there will be an option to remind its members...

 

[Vicetrailia]

Yeah I'm not gonna believe this, but it's probably not worth the effort to research proper at this point.

 

[JDB]

It only took about a dozen retarded Tweets daily but he finally did it.
Mission Accomplished.

 

[O.v.e.rlord]

Trump is a fucking wizard.

 

[rokkerkory]

Thank god since prices are over $4 for 91 octane a gallon at many places here

 

[black_13]

Wouldn't prices have gone lower if the Iran deal had stayed?

 

[Mohonky]

Americans still dont know what expensive is when it comes to fuel.

 

[mckmas8808]

Wouldn't prices have gone lower if the Iran deal had stayed?

Yes!

 

[Trogdor1123]

He also tweeted that Canada needs to drop it trade barriers today... The day after he put up trade barriers against Canada. This guy's hypocrisy knows no bounds

 

[Grinchy]

Americans still dont know what expensive is when it comes to fuel.

If you're paying more per pint, but driving a much shorter distance, are you really paying more for gas?

 

[ickythingz]

He also tweeted that Canada needs to drop it trade barriers today... The day after he put up trade barriers against Canada. This guy's hypocrisy knows no bounds

That's not hypocrisy, that's how you wield power. You need to learn how to differentiate.

 

[CaliggyJack]

Fuck OPEC.

 

[NickFire]

He also tweeted that Canada needs to drop it trade barriers today... The day after he put up trade barriers against Canada. This guy's hypocrisy knows no bounds

That is not hypocrisy. He told them in advance they would be imposed if they did not change their ways to satisfy him, and did exactly what he said he would when they didn't. It's called I don't want to do it, but will if I have to in order to get things done.

If I say I don't want to punch someone who broke into my house, but will if they don't leave, how does that make me a hypocrite when I punch them for not leaving?

 

[Insane Metal]

That gif, fucking lol Trump.

 

[Trogdor1123]

That is not hypocrisy. He told them in advance they would be imposed if they did not change their ways to satisfy him, and did exactly what he said he would when they didn't. It's called I don't want to do it, but will if I have to in order to get things done.

If I say I don't want to punch someone who broke into my house, but will if they don't leave, how does that make me a hypocrite when I punch them for not leaving?

It's not hypocrisy to say open your market but I'm closing mine? Especially when that nation isn't the one at fault? Ok then.

Its not (entirely) true. Agriculture in Canada literally depends on us imports and exports. His claims of being treated unfairly by Canada in regards to the trade deficit is patently false. If he was really going to bitch about something that has really unfair trade practices and should be gone after it is the bloody CRTC. That's a joke and should be gone after for sure.

That's not hypocrisy, that's how you wield power. You need to learn how to differentiate.

Those items are not mutually exclusive.