Trump goes 180 on his previous statements on OPEC and Oil

Trump goes opposite from his previous statements on OPEC and Oil

Donald Trump, the President of the United States, has long cast the Organization of the Petroleum Exporting Countries (OPEC) as an evil force tearing U.S. national off by not driving an adequate amount of oil. Now, the President is begging to Saudi Arabia and Russia to stop producing too much oil. Previously, Trump named OPEC a monopoly that needed to be broken up. In November 2012, Trump tweeted that these countries are robbing the U.S. blind.

Since taking the oath as the United States 45th President, he repetitively hit OPEC for driving higher oil prices to hurt U.S. drivers. Moreover, Trump tweeted in February 2019 with words that OPEX, please relax and take it easy. The whole world can’t take a hike in oil prices. Rather than slamming OPEC for artificially restrictive production, the President is influencing the alliance to do just that.

Donald Trump urging the OPEC to stop oil crash

And instead of calling for OPEC to broken up, the American President is uplifting the status of the group by urging it to stop the oil crash – one that threatens to start a surge of economic failure and job losses in Texas and all over the oil industry of the United States. Even Donald Trump is trying to be a broker for signing a deal between Russia and Saudi Arabia to terminate their devasting price war by cutting oil production at a massive level.

The tweets of Trump on the subject on Thursday helped the American oil prices to hike twenty-five percent – their most significant single-day gain in history. Head of the global commodity strategy at RBC Capital Markets, Helima Croft told CNN Business that it is wonderful to have Trump get in the middle of the issue.

Texas with the 2020 huge oil Price

That reversal mirrors shifting political realities. Due to the worldwide COVID-19 pandemic as well as in the U.S., America is facing millions of job losses ahead of the 2020 November presidential election. An extended slump in the United States oil industry would only intensify the economic pain, especially in Republican-leaning states. Chief United States policy strategist at AGF Investments, Greg Valliere, said Trump couldn’t reelect as President without Texas. And it is as simple as that.

Trump goes 180 on his previous statements on OPEC and Oil

Not only is Texas the 2nd-biggest electoral prize after the California state, but it is also by far the largest oil producer of the country. Texas produces more oil than every OPEC nation, not named KSA. However, Texas getting hit with cheap oil. Russia, looking to blunt the rise of United States shale oil producers, refused the previous month to decrease oil production. In response, Saudi Arabia increased the output and slashed the prices.

Reflecting on the firmness of the moment, the President is meeting with the CEO’s of Chevron, ExxonMobil, and other top United States oil companies on Friday to discuss the crisis face by the industry. Steering this situation is a mild balance. The administration of the White House does not want oil bankruptcies as well as job losses on its hands. However, the U.S. President does not wish to see helping CEO’s of oil companies and Saudi Arabia at the cost of average Americans who need cheap oil prices.

Read Also: Oil Prices drop to 17-year low as KSA-Russia standoff continues


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