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President Donald Trump's request to Saudi Arabia to increase oil production shows how few options he has to lower gas pump prices before the elections, which is essential to continue its program. a tweet from Trump suggesting that he had persuaded Saudi King Salman bin Abdulaziz to effectively increase his nation's production to a maximum level, which would have widened a gap in the oil cartel, he said. Did not deny having made this request.
It was consistent with the president's conscience that high prices for gasoline have long been a campaign weapon to use against the ruling political party. According to the Energy Information Administration, unleaded retail gasoline in the United States, including taxes, is about 55 cents a gallon more than at the same time. last year.
Trump, in an interview recorded Friday on Fox News Channel Responsibility for rising oil prices at OPEC, which he says is "100%", is manipulating the global market and "must stop".
"They still have to sell 2 million barrels in my opinion" his "very good relationship" with the Saudi king and Crown Prince Mohammed Bin Salman would help to get the result he wants.
Few options
Trump has few other short term options to lower gasoline prices. significant foreign policy efforts, including the sanctions imposed on Venezuela.
The president could also influence prices by exploiting the nation's emergency oil reserves, as did President Bill Clinton in the 1990s. But the strategic oil reserve, a reserve of fuel stored in underground salt caverns along the Gulf of Mexico, was created to guard against supply disruptions, and any attempt to sell this crude at lower prices could spark intense criticism. The Trump administration has taken tangible steps to allow national energy companies to access more oil and make it cheaper to extract, which would help increase production at the cost of pain At least temporary – in the form of lower prices – In response to the clamor of oil industry executives who complained that former President Barack Obama imposes too many limits, the US Department of Finance said the US government has been asking for more money. Trump Interior is developing a plan to significantly expand offshore oil development and accelerate onshore energy projects.
But a new development in the border territory, both off the coast and within the Arctic National Wildlife Refuge in Alaska, could be
"Incarnate Obama!"
True, Trump has voters on both sides of the question of the price of oil.
Higher prices benefit Trump's major backers like Harold Hamm, the billionaire president and CEO of Continental Resources Inc., the largest oil producer in the Bakken Basin. But they have a disproportionate impact on the portfolios and mood of the Trump Pass political base.
A GasBuddy poll released prior to the Memorial Day weekend, the traditional beginning of the US "summer driving season," revealed a 24% drop from last year in the percentage Americans saying that they had planned a summer trip on the road. Thirty-nine percent said high gas prices were a factor, twice as high as the year before.
When the Republican Mitt Romney tried to use the gas prices against Obama in the 2012 presidential campaign, Trump tweeted: At crazy Obama levels! "Obama prevailed then, but that did not stop the Democrats from trying to use rising gas prices against Trump now." The leader of the Senate minority, Chuck Schumer, argued that the president should "stand up to OPEC", while Senator Ed Markey of Massachusetts introduced a law aimed at reinstating the ban on US oil exports after four decades
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Saudi Arabia has the capacity to pump a maximum of 12.04 million barrels per day, according to the International Energy Agency. The kingdom pumped a little over 10 million barrels a day in May
See also: Unexpected oil losses overwhelm Saudi output
At a meeting of the Organization of Exporting Countries of oil in Vienna in June, Saudi Arabia's largest producer group – joined the other members in agreeing to reduce its over-compliance of production cuts in place since beginning 2017. Saudi Energy Minister, Khalid Al-Falih, reported that] 1 million barrels a day in the market
The tricky deal was concocted to satisfy some producers, as the l 39; Iran and Venezuela, who wanted to limit production, and others, like the Saudis, who sought to liberate themselves
If the Saudis had accepted Trump's request, "that means that he calls to leave the OPEC, "said the governor of OPEC , Hossein Kazempour Ardebili, in an interview. "A country can in no case exceed its production quota by 2 million barrels unless it leaves OPEC."
The Trump administration said in early May that it would renew US sanctions against Iran.
OPEC tolls were intended to help drain a global overabundance of hydrocarbons, an objective that was largely achieved, although supply disruptions are now exerting upward pressure on prices. Venezuela is in the middle of an economic crisis, which has brought down oil production. In Libya, where a dispute over key port control has hindered production, the Arabian Gulf Oil Co. on Saturday arrested 220,000 barrels a day of production, according to a person familiar with the shutdown.
Brent crude, the world's benchmark oil index reached $ 80 a barrel in mid-May, the highest level since November 2014. It closed Friday at $ 79.44 a barrel [19659003] – With the assistance of Grant Smith, Nayla Razzouk and Wael Mahdi and Javier Blas
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