Has Trump Overplayed His Hand With Saudi Arabia? | WHAT REALLY HAPPENED


Has Trump Overplayed His Hand With Saudi Arabia?

Authored by Tim Daiss via Oilprice.com,

Last year, President Donald Trump successfully convinced Saudi Arabia to help keep a lid on global oil prices by ramping up production. The Saudis acquiescence to Trump’s tweets at the time were likely appeasement to the president for placing fresh sanctions against Saudi Arabia’s middle eastern nemesis, Iran. Moreover, most concede that Riyadh was a deciding factor in swaying the president to withdrawal from the 2015 nuclear accord with Iran. Consequently, Saudi Arabia’s kowtow to Trumps’ tweets was a returned favor.

However, when Trump later granted waivers that allowed several countries to keep importing Iranian crude, oil prices started their nosedive during the last quarter of the year, catching Saudi Arabia flat-footed, and according to many accounts furious at the president for what they saw as a betrayal of trust.

Now, Trump is tweeting again about high global oil prices and asking OPEC+ to reconsider its oil production cut deal that was implemented at the start of the year. On Monday, the president tweeted “Oil prices getting too high. OPEC, please relax and take it easy. The world cannot take a price hike - fragile!”

However, in order to remove excess oil from global markets, particularly due to Trump’s Iranian oil exports waivers in addition to rampant U.S. production that just hit a once unthinkable 12 million barrel per day (bpd), it’s likely that Riyadh will think twice before appeasing the American president - who at the end of the day appears to lack in-depth knowledge of how global oil markets work

Pushing back against Trump
In fact, in an apparent rebuke of the president, Saudi Arabian Energy Minister Khalid Al-Falih said yesterday that oil inventories in the U.S. are “brimming,” and reducing that glut remains the main goal for the group, adding that the kingdom plans further curbs to output in March.

Webmaster's Commentary: 

I sometimes wish President Trump had a sense of the "bigger picture", when it comes to the global economy; and right now, in terms of international relations, the US looks like the proverbial bull in the china shop, threatening wars against any country the President doesn't particularly like, or more importantly, wants to regime change.

Sometimes, it appears, he truly believes that he can do that all by himself.

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA