How President Trump Can Ease Pain At The Pump
By 1600 Staff
It’s summer, which means demand for gas is peaking for the year. As Russia and OPEC play the same old games with oil output to increase the price, President Trump is working behind the scenes to increase oil production, but until then, he may opt to open up reserves.
According to OilPrice.com
The 180-degree turnaround in the oil market from May is pretty staggering, even for an oil market steeped in volatility and uncertainty. In late May, rumors of higher output from Saudi Arabia and Russia led to a crash in prices, and led to speculation of another lengthy downturn. By late June, however, it isn’t clear that even a massive 1-million-barrel-per-day increase from OPEC+ will be enough to fill the worsening supply gap.
That means higher oil prices are likely. WTI has spiked by about $8 per barrel since last week, and continues to climb higher. “We are in a very attractive oil price environment and our house view is that oil will hit $90 by the end of the second quarter of next year,” Hootan Yazhari, head of frontier markets equity research at Bank of America Merrill Lynch, said. “We are moving into an environment where supply disruptions are visible all over the world… and of course President Trump has been pretty active in trying to isolate Iran and getting U.S. allies not to purchase oil from Iran,” he added. As has been widely reported, the Trump administration has aggressively pressed Saudi Arabia to boost output to offset declines from Iran. Saudi Arabia has complied, promising to ramp up output to about 11 mb/d in July, up from less than 10 mb/d in May. It’s an astounding increase, both in terms of volume and the speed of the increase.
. . .
That raises the odds that Trump turns to the SPR to head off higher oil prices. “We think that WTI would not have to advance much further before the U.S. Strategic Petroleum Reserve (SPR) is brought into play,” Standard Chartered wrote in a note. “Higher gasoline prices, particularly in the Midwest, are likely to provoke a SPR release in the run-up to November’s mid-term elections.”
In order to reverse the Obama administration’s Iran nuclear deal and pressure the Iranians into ceasing their aggressive behavior, the president had to stop buying Iranian oil. This supply shock, in tandem with OPEC’s production cutbacks, could prompt the president to release the strategic petroleum reserve, which would stabilize rising prices.
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About The Author
OR we could build a couple of refineries (say one in Texas and one in Oklahoma) to process the crude we are pulling out of the ground. An extra 500,000 to 1,000,000 bpd output of refined product in this country would go a long way to diminish prices here.
….I hope the ungrateful Arabs don’t call US when Iran invades them!!…..and I hope the President of US do not help them at all, it is very well proven this Bastards are no friends of US!!,……I suggest that if that ever takes place againg, we should just keep the bastard country and their oil for ourselves!!,….End of story!!,….
….I hope the ungrateful Arabs don’t call US when Iran invades them!!…..and I hope the President of US do not help them at all, it is very well proven this Bastards are no friends of US!!,……I suggest that if that ever takes place again, we should just keep the bastard country and their oil for ourselves!!,….End of story!!,….
Did you even read the article? article quote:Saudi Arabia has complied, promising to ramp up output to about 11 mb/d in July, up from less than 10 mb/d in May. It’s an astounding increase, both in terms of volume and the speed of the increase
In plain English the Saudi’s are helping the USA. You owe them an apology. Thank God they trust Trump & are our ally.
President Trump also contacted the Ruling folks in Saudi Arabia, and they stated they would increase production, as you stated. I have read others complaining about Saudi Arabia. but those complainers should also watch BBC on television. I read report on the increase in production, to ease the price, since so many Americans own multiple number of cars , compared to other countries, and also travel more in summer months, In Breaking (oil and gas) into the separate kinds, in refineries or fractionating plants, they only get so much vehicle gas, from each barrel. Also writers should realize their are many Princes, of House of Saud. Only a few of those fund and support Wahhabi, the terrorist tribes, in Saudi Arabia. When the father designated his son, to be next king, that leader arrested several of those who support the terrorism, or mosques in other countries, and they are on House Arrest. The leaders in Saudi Arabia was friends to George H. W. Bush, George W. Bush, and they met with Donald Trump, and accepted his speaking to 55 Muslim Counties, last year, and are switching to manufacturing and capitalism forms, and away from the Energy. Completing Keystone Pipeline, and N.D. Access Pipeline, also allows USA to move more USA oil and gas, plus the Canadian, to USA refineries, and USA is not exporting energy to the world market. All of this has to be considered. And whether you like Donald Trump, is in-material. He is successful, in improving our economy, jobs, taxes, and leaving more money in our pockets.
Time for the US oil companies to start drilling off the Artic and Atlantic coasts.
The SPR is not for making political points by stabilizing prices. It’s for oil shortages and emergencies. https://www.thebalance.com/strategic-petroleum-reserve-3306208. But breaking norms is nothing new for 45.
EVERY President has done this moron! Even your god, King Obama
I am glad Barry only used it to fight the “good” fight. Quote: Oct 28, 2015 · “Chairman Murkowski is currently reviewing the budget proposal as it relates to selling off oil from our strategic energy and national security asset – the Strategic Petroleum Reserve,” Michael Tadeo, Murkowski’s spokesman said in an emailed statement to reporters.
Sounds like Democratic campaign fund raising 101 to me.
Obama just does not have a business brain like Trump, he just went along with the usless democrat ideas, drillers are drilling and caping oil wells then moving on to the next, once the oil pipes are ready the wells are good to go, so taping into the SPR is not a big deal,as it is we could fill them right back up in no time. plus US crude is clean oil not dirty oil as in the middle east, so bring on the new customers, Go Trump.
Do not release strategic petroleum reserve, we are going to need this for what is coming.
We all have to tighten our belts, and trust President Trump to remedy yet another fiasco with these Middle Eastern countries; hopefully we can drill enough of our own oil to offset these oil games the world plays.
Are we saving our oil until all cars are total electric?
This is BS, if you check the leading exporters you’ll find the USA is among the top of the list. United States has plenty of its own fuel it’s just creed that keeps things as is.
any help at pump is good!!1 most daily drivers are spoiled and waste gas and politicians dont help nor do road const..and traffic jams uncalled for!!! wasting millions of gallons and millions of dollars!! spoiled we are!!
OPEC needs to be slapped around quite a bit!!!
According to Trump “we are the greatest producers of oil in the world” then why are we still buying oil from Iran who is our worst enemy ? Something stinks here. Maybe our own oil producers would rather sell to other countries at a higher profit. Let’s go Donald, straighten this crap out. I think Trump is the greatest but he must halt this rise in oil or the Demo-rats will go crazy with this one.
John, in answer to your question, our past moron in chief and some others have made “laws of conduct” as it were that America must buy oil from other countries. America is sitting on some of the greatest reserves of oil in the world. Its past time we use them instead of paying crazy prices to other countries for their oil.
Blame the tree huggers for what went on in American for the past 30 +years Are should I say the communist
remember Obughole hated the oil business.
https://www.forbes.com/sites/chrisprandoni/2014/04/17/obama-stymies-oil-and-natural-gas-production-on-federal-lands/#6fc76cbb3a77
https://www.theguardian.com/world/2016/mar/15/obama-to-kill-off-arctic-oil-drilling
John, i think OUR Oil IS Being SAVED for the ‘Aftermath’
(of you know what). rite ? The info of US oil was known
Way Before DJT Presidency.
what a joke this whole think stinks of U.S. oil putting money in trump pocket
Not to worry – the US is in the best hands in decades. It is okay for oil companies to make some money – tens of thousands of Americans work for our oil companies and make good money so they can buy products (more of these will be American so as to spread the money around somewhat).. Prices will come down as always when the Summer vacation is over. I see better times coming for most Americans due to the forcing of Americans to use more American products. But yes, we do need to trade to get what we don’t produce, but our economic policy should be to make Americans better off first then to be fair to other countries (they have not been fair to us in many decades). Cheers. — Carlo..
Let’s start refining our own oils and stop sending our sweet oil out of the country. If we can use our own we don’t need to import any other countries high dollar oil. Get the EPA out of the way, we could lower the price of gas at the pump.
I just recently read (fake news?) that the U.S. is the largest oil exporter and one company in the U.S. is the one. Why??? What did we go through all the B.S. on fracking and drilling to make Citi the one moving the oil overseas.
I will put my faith In President Donald Trump, after all he is a businessman and he knows what he is doing.
Hey IDIOT, the only “energy” that the US exports is GAS and various chemicals, not gasoline nor diesel fuel, YOU IMBECILE, eh ?
Soooo, OPEC ‘plays’ You, ( in trickery) ???Mr . President et sl ???
> Guide ‘them’ . hmmm. ___
> Hellooo.
sp. correction = Mr. President ET AL.
& the International ‘Game of Deception’
IS INDEED Worrisome.
If the evil liberal demoncrat Nazi’s Commie party traitors to America continue to go unpunished (RINOs too)! They’ll continue their treasonous ways! Enough is enough with this Deep State BS! Drain the rat infested swamp, ASAP! President Trump!
I would much rather get oil from Saudi Arabia than Iran. Currently, Iran is falling apart ever since President Trump pulled us out of that awful Iran deal. It shows that idiot Obama and John Kerry were both supporting terrorism through supporting the Iran Deal. Hopefully, in the future, the USA will be producing enough oil so that we won’t depend on oil from the Middle East, but in the mean time, maintaining a good relationship with Saudi Arabia is in our best interest.
The author is an idiot, We should not be exporting oil ior going into our SPR. Let the price find it’s free market price. We must never again be hostage to OPEC. Our supply makes us strong.
Three weeks ago the price was $2.999. Then it dropped to $2.769. The July 4th piracy game is on. The price I saw yesterday was $2.899. The dealers do this with every single holiday because they know the people will be traveling more and ignore the standard holiday rip offs. There is no other excuse but the greed of the dealers.
Working deals so the oil prices are lower for the elections? Politics at its best.
The SPR should have been filled at $40/barrel so it can be sold off at $100/barrel.
Of course the Saudis would comply. Wasn’t it a bunch of Saudis that caused 9/11? Makes you think.
Well, at least Paul Ryan and his “Democratic Smirk” is right there behind the President. Somehow, Ryan acts as if he thinks HE was elected President. Thank God for Trump – in spite o Ryan and McConnell – & Flake, McCain and their overinflated egos!
NO ONE DOES IT BETTER AND FASTER THAN TRUMP. HE HAS OUTED THE COMMUNIST DEMOCRAT PARTY. GOSPEL BLACKS AND LATINO FAMILIES ARE IN HIS CAMP GROWING LARGER EVERY DAY. NO ONE WANTS TO BE A COMMUNIST STOOGE.
I WAS IN ABU DHABI IN NOV 1998. GUESS HOW MUCH OIL WAS ? $10.00 A BBL. OPEC WAS MEETING TO DEAL WITH THE CRISIS. EVERY KING, SULTAN AMD EMIR WAS THERE.
WE CAN GET THOSE PRICES DOWN . TRUMP CAN SURELY DO IT.