Why would he want oil so low given that the US is in the top 3 producer/exporter of oil? Low oil price is a sign of economic weakness and not necessarily as stimulating to economic activity as you would think. If anything, the benefits are equalised by the reduced activity of oil jobs in drilling, exploration and production. Many other secondary industries that rely on the oil sector to stay in business are also major contributors to economic activity. Decimating the oil price would lead to a recession. Just think of what happened to the US economy following the investment into oil following the 1970s high prices. People and businesses went broke following the price going so low soon after. If Trump says he wants $50 oil, I expect it to go to $150. He must have forgotten to carry the 1.
High oil price stimulates the economy, leading to increased jobs and supporting sector cashflows etc.. The only person that wants low oil is the driver, and he has minimal gain from low oil price as compared to an entire industry (especially US shale) built around the sector. Trump says he wants low oil to do nothing else but win favour with the helpless drivers who voted for him, either than or he's ignorant on the matter. He will find a scapegoat when he gets higher oil prices, maybe he will blame Israel. Now think of Nord Stream. Who benefited from high gas prices following the severing of Russian exports of LNG to Germany? Better yet, ask yourself which country started shipping LNG to Germany right after the event at extraordinary prices? I will give you a hint, starts with a U and ends with an A.
WDS Price at posting:
$22.98 Sentiment: Buy Disclosure: Not Held
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