Trump declares war on OPEC and Saudis laugh at soaring oil prices

Donald Trump is stepping up his attack on oil prices as US crude has reached its highest level in five months today. Until now, the US president employed him to denounce high energy costs via Twitter, but he now seems to want to do more than just criticize OPEC online. As reported by CNBC, the United States wants to ensure the "dominance" of this sector through a decree-law aimed at strengthening the infrastructure of pipelines. In reality, Trump is walking a tightrope when it comes to raw.

It is very important that OPEC increase the flow of oil. Global markets are fragile, with the price of oil becoming too high. Thank you!

– Donald J. Trump (@realDonaldTrump) March 28, 2019

The cheap energy is ideal for farmers, ideal for Trump

The main hurdle that Donald Trump faces to maximize his popularity through his energy policy is that two of the sides of his base want different things. First, there are farmers and Rust Belt workers who like to see the cost of living reduced. Farmers, in particular, consume a lot of fuel, and any reduction in energy costs is a significant benefit to their business. In this regard, Trump can help offset some of the damage his trade war has caused to some crops.

The other side of the coin is that other red states like Texas and Oklahoma like high energy prices. Historically, Democrats have been abused in these areas for trying to reduce the value of crude oil. Trump relies on tribalism to keep these states in his ranks, and if polls are an indicator, they still are.

American ingenuity – neither Obama nor Trump – has already created energy "domination"

In addition, it is rather strange to see Trump denigrate OPEC on high oil prices and want to restore the US "dominance" when it is already the largest oil producer in the world. Obama does not deserve credit for this, as he has said before, but neither is Trump. The good old technical engineering has helped US access to exploit unusable deposits.

Crude oil production in the United States has been on the rise for years. | Source: FactCheck.org

However, there is another reason why Trump wants to control oil prices, and that is the same reason he is attacking the Federal Reserve with cheap money. All that Trump does is try to stimulate the economy. He needs it to make his claims for GDP a reality. If energy prices are too high consumers, defensive. It also undermines wage gains as inflation erodes wages.

Janet Yellen once described the cheap energy of "tax reduction" for the American people, which is probably true. Since OPEC is much less diversified in general than the United States, cheap oil as a whole is a significant negative factor relative to the United States, where it is a net benefit to the service economy. .

Could Trump's war on oil prices silence his popularity in Texas?

If the US president manages to crush energy prices, there could be an interesting turn in 2020. Texas is turning blue, and Beto O'Rourke almost overthrown Ted Cruz in the last election.

If workers in the oil sector are irritated enough, they could revolt in 2020. The flip side is that Trump could increase its manufacturing base in the "blue wall" of Michigan and Wisconsin as the economy continues to buzz.

That's Mr. Trump's all-in-one strategy. The last Democrat to take the 38 votes in Texas was Jimmy Carter in 1976.