This is why oil prices are so low. They are trying to put US energy producers out of business.
This is a TRADE WAR and we need to be fighting it.
Normally I am AGAINST government intervention in free trade- but when another country manipulates the economy we have to manipulate it back.
I am not sure I understand enough about the oil industry to know a solution- but adding a tariff to imports would decrease our debt, and have the effect of canceling out their strategy.
If they win this trade war and put US energy manufacturers out of business we will WISH for $100 a barrel oils. They will go to $200 a barrel
Saudi oil production has been relatively flat the past few years. It is increased production from the U.S. and other countries that has raised the worldwide supply of oil. The Saudis don’t have the control over world supply that they used to have. They are caught on the horns of a dilemma, because they are so dependent on oil revenue to fund their government. In the current environment, if the Saudis unilaterally either cut production or increase it, they will likely lose revenue.
If we “put US energy manufacturers out of business” do you think that will cause all the oil and gas under US soil to be stuck there forever??
Trade wars are good for the consumer in the short term, unless it results in either a large chunk of the producers going out of business, or in the formation of a Trust (”Trust” as in, Teddy Roosevelt, “trust-buster”) in reaction.