Oil Prices at Four-Year Peak Despite Trump’s Protests

Oil

Oil prices have hit a four-year peak even as President Trump appeals to oil producers to ramp up output and bring prices down. Crude in some markets is now as high as $81.20 per barrel, with futures rising along with real time rates. Prices are now the highest that they’ve been since November 2014.

A weekend meeting between top oil producers was hoped to result in higher output and lower costs, however, no agreement was made. Both Saudi Arabia and Russia (two of the world’s largest producers) were involved in the talks.

Producers Deem Production Increase to Be Unnecessary

The discussion centered around increasing output by 500,000 barrels per day. Some top traders predict that prices could reach up to $100 per barrel by the beginning of 2019.

President trump has appealed directly to crude producers in the Middle East, saying in a tweet that “The OPEC monopoly must get prices down now! We protect the countries of the Middle East. They would not be safe for very long without us, and yet they continue to push for higher and higher oil prices. We will remember.”

OPEC is the Organization of the Petroleum Exporting Countries. It is made up of 15 nations including Iraq, Kuwait, Qatar, The United Arab Emirates, Saudi Arabia, Nigeria, and Venezuela.

OPEC appears to be very aware of their position and the impact it can have on the international market. OPEC has predicted that America’s strong position with its own production will eventually be eroded, saying that shale oil production will hit its ultimate peak within the next ten years.

Foreign Powers Partially Blame Trade Tensions for High Oil Prices

Russia implied that American foreign policy was contributing to high petroleum prices, with Energy Minister Alexander Novak determining that an increase of production in the short term was not necessary, and that the ongoing trade disputes between the United States and China were hindering the international market. Russia also pointed to America’s sanctions on Iran as being bad for the whole oil business.

Oil prices directly impact other prices in the market. Transportation, plastics, manufacturing, and food production are all directly linked to oil prices. Continued growth in average prices could make consumer goods and transportation more expensive around the world.

The United States is mostly self-sufficient in terms of oil. Petroleum products are exported to 180 countries, and America only imports 10.08 million barrels per day, with 47% of all petroleum related imports coming from NAFTA members Mexico and Canada.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

You May Also Like