Posted on 04/30/2020 4:33:17 AM PDT by Oldeconomybuyer
WASHINGTON/LONDON/DUBAI - As the United States pressed Saudi Arabia to end its oil price war with Russia, President Donald Trump gave Saudi leaders an ultimatum.
In an April 2 phone call, Trump told Saudi Crown Prince Mohammed bin Salman that unless the Organization of the Petroleum Exporting Countries (OPEC) started cutting oil production, he would be powerless to stop lawmakers from passing legislation to withdraw U.S. troops from the kingdom, four sources familiar with the matter told Reuters.
The threat to upend a 75-year strategic alliance, which has not been previously reported, was central to the U.S. pressure campaign that led to a landmark global deal to slash oil supply as demand collapsed in the coronavirus pandemic - scoring a diplomatic victory for the White House.
Trump delivered the message to the crown prince 10 days before the announcement of production cuts. The kingdom’s de facto leader was so taken aback by the threat that he ordered his aides out of the room so he could continue the discussion in private, according to a U.S. source who was briefed on the discussion by senior administration officials.
The effort illustrated Trump’s strong desire to protect the U.S. oil industry from a historic price meltdown as governments shut down economies worldwide to fight the virus. It also reflected a telling reversal of Trump’s longstanding criticism of the oil cartel, which he has blasted for raising energy costs for Americans with supply cuts that usually lead to higher gasoline prices. Now, Trump was asking OPEC to slash output.
(Excerpt) Read more at reuters.com ...
This is the MSM attempt to distract us from the Flynn revelations isn’t it?
The Russians want ti control the ME. So do the Saudis. And now they are at each other with oil prices rather than weaponry.
President Trump essentially used leverage oin the Saudis, he has none with Russia except force majeur.
I am proud of president Trump.
He has saved the US oil industry, and he has the courage to take issues to the fore wall.
As far as the oil glut, its a huge help to reopening economies, so its not ALL bad.
My thoughts also.
Oh crap! Sounds like a quid pro quo which will need a congressional investigation. Here comes the next round of impeachment proceedings.
Can hardly wait.
I support this.
I remember the 1st oil crisis. Shortly thereafter, I had occasion to work with someone who knew Greenspan. He told me about how the 7 sisters set prices.
Yes, morality and principles will take you a long way, just like Obama showed us.
The body of Real Politik requires Machiavellis and Count Metternichs,even while adhering to the principles of our founding fathers. Publicly proclaimed ideology is a weakness exploited by our enemies. Look at Obama. The Russians fed Obama all the ideological things Obama wanted to hear and Putin bent Obama over a rail and corn-holed him royally.
That’s not happening with PDJT, who is a brilliant strategist.
So you are OK with the Saudis targeting shale short term using oversupply to bankrupt them so as to regain their hold over long term much higher prices? You got a serious case of the economic/business dumbs. The Saudis/Russians/OPEC were being predatory trying to eliminate competition. How is telling them quit your sh!t or we are “taking our ball and going home” in any way unethical or morally bankrupt? Downright ignorant. The same way a cartel can raise prices, they can lower them below everyone’s production cost and eliminate fair market competitors.
Ay what point does excess production become an ecological disaster?
We have 17+ tankers sitting off the coast of CA because they cannot unload. We have no storage space. Where are we supposed to put the oil these little spoiled brats imsist on selling us?
“Where are we supposed to put the oil these little spoiled brats imsist on selling us?”
The SPR at these prices.
L
I would agree with buying it for the SPR. However, that literally requires an Act of Congress, and the Dems do not like oil.
I’m actually astonished to find any FReepers who still think that’s a good idea.
The U.S. became the world’s largest petroleum producer a couple of years ago. Don’t you find it bizarre that the country producing more oil than anyone else is telling other countries they’re producing too much oil?
Here’s a question: Are we still refining foreign oil?
If the answer isn’t solely due to grade: Why are we still refining foreign product?!?
No, we want them to NOT try to drive our domestic oil producers out of business by slashing oil prices, so that they can raise prices later.
You clearly don't understand the purpose of the SPR. They are another government operation to spread corruption - evidently. Look at their history. They buy high and sell low.
More of a brilliant tactician than a brilliant strategist isn’t it?
True or not, Trump should be fueling our jets to leave the kingdom as he talks to the Saudis. The president should be throwing our weight around a lot more than he does.
I am not averse to that. The problem is the screaming about free markets that would happen. In any case, Trump protected our oil industry and I have zero issue with how he did it. Do not F with our oil industry or you will have to deal with Iran on your lonesome. Free (cheat) marketeers get no ammo and the “Fair” market is protected.
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