WTI Crude

Loading...

Brent Crude

Loading...

Natural Gas

Loading...

Gasoline

Loading...

Heating Oil

Loading...

Rotate device for more commodity prices

Alt Text

Texas Oil And Gas Output Continues To Fall

The Railroad Commission of Texas…

Alt Text

Shell Considering Dumping Its Iraqi Oil Fields

Royal Dutch Shell is considering…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Saudi Arabia Issues Warning To Trump: Don’t Stop Saudi Oil Imports

Oil storage tanks

President-elect Donald Trump jeopardizes the global economy through his promises to block Middle East oil imports for the purpose of creating an energy independent United States, according to petrostate Saudi Arabia.

Over the course of the two-year American election process, Republican nominee Trump promised on the campaign trail to divest U.S. interests from “our foes and the oil cartels,” referring mainly to the Organization of Petroleum Exporting Countries (OPEC), of which the KSA is the largest producer and de facto leader.

“At his heart President-elect Trump will see the benefits and I think the oil industry will also be advising him accordingly that blocking trade in any product is not healthy,Khalid al-Falih, chairman of Aramco and Saudi Aramco Oil Minister, told the Financial Times in Marrakesh, where world leader’s are currently negotiating the nuts and bolts of the landmark 2015 climate change agreement.

Saudi Arabia is the U.S.’ largest Middle Eastern oil supplier, though the North American country gets most of its energy from domestic and Canadian sources.

Al-Falih added that the free trade energy culture currently in place benefits the United States because it has created a refining industry and ignited a job-hungry shale revolution.

Related: Iran Surprises OPEC With A Further 250,000 Bpd Increase

“The U.S. is sort of the flag-bearer for capitalism and free markets,” according to Al-Falih. “The U.S. continues to be a very important part of a global industry that is interconnected, that is dealing with a fungible commodity which is crude oil. So having equalization through free trade is very healthy for oil.”

Critics of American foreign policy say the U.S.’ hunger for energy played a role in encouraging the country’s political entanglements in the Middle East. Reaching energy independence would supposedly free leaders from the economic risks of intervening or stepping back from conflicts in the region, according to proponents of energy independence.

Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Kr55 on November 15 2016 said:
    Seeing a lot of people trying to tell Trump what he can't or shouldn't do. Don't people know that only makes people like Trump want to do it more? Heck, even if he didn't want to do it to start with, just telling him not to will make him change his mind to want to do it.
  • bob on November 16 2016 said:
    trump will kick your ass
  • Have some balls on November 16 2016 said:
    DO IT TRUMP!!! Screw the Saudi's. America first.
  • Hoss on November 16 2016 said:
    (a) I wouldn't threaten Trump nor Pence. (b) free markets go both ways, translates to the United States is no longer under the boot of the OPEC cartel nations. I'm sure China will fill the vacuum, however they aren't as a pushover as previous American administrations. (c) Don't threaten America....
  • bOB 2 on November 16 2016 said:
    The majority of domestic oil and gas wells are drilled then capped of. The mid east oil supply is not forever. "Use mid east oil up 1st then use ours" is well known in the US oil industry. But if the US refuses to buy their oil it might beak the monopoly OPEC has on fixing prices.
  • Mike Robinson on November 16 2016 said:
    We don't need their oil. We have our own. If we quit buying theirs, they won't be able to fund terrorists any longer.
  • Mikey on November 16 2016 said:
    C'monnn, you admitted you tried to bankrupt shale oil sector in USA and now you're whining, not being able to deal with your own mess?
  • mark on November 16 2016 said:
    “The U.S. is sort of the flag-bearer for capitalism and free markets,” according to Al-Falih. “The U.S. continues to be a very important part of a global industry that is interconnected, that is dealing with a fungible commodity which is crude oil. So having equalization through free trade is very healthy for oil.”

    So now the inbred is a capitalist. I would not import 1 tablespoon of oil from the middle east.
  • David on November 16 2016 said:
    The Saudi's are manipulating the "free market" for the sole purpose of driving out competitors with a higher cost margin. No reason why we shouldn't in turn manipulate that same market to protect what they are trying to destroy. My solution would have been to immediately begin import quotas from any country that was purposely increasing supply. If we had done that from the beginning, the prices inside the US would have remained stable enough to continue the shale boom. At the same time the price outside the US would have cratered putting pressure on Russia, Iran, Saudi Arabia etc. Who knows whether the Saudi's would have continued with their supply run-up policy. For me I am sick and tired of watching US stand by while OPEC manipulates the market. We were finally in a position to do something about it and it could have ended once in for all in our true energy independence, but alas we were failed once again by our leaders.
  • Brian on November 16 2016 said:
    Free trade? OPEC is an illegal organization (according to US law) whose sole purpose is to artificially set the global price of oil to the financial and political benefit of member counties.

    The US should have an relative high import tax on energy to promote US energy independence and conservation. Which would lead to a lessor need for direct involvement of the US military in the Mideast.
  • chris on November 16 2016 said:
    I am not for or against the U.S. halting saudi imports of oil however, what no one here is mentioning is the "petro dollar". It has allowed the current debt lifestyle of all Americans for over the last 40 years and solidified the U.S. petro/dollar as the defacto reserve currency of the world. The agreement has 3 components to it. 1)The saudis agree to denominate all oil transactions in U.S. dollars 2) the U.S. doesn't export any oil3) saudi agrees to buy U.S. debt. Now break this agreement off completely and you enter a very changed world in that the strength of the U.S. dollar circulating globally as the most "used" currency is put into jeopardy as saudi will then simply start to denominate oil trades in any currency all of the time as well as accept payment in any currency it chooses. The law of unintended consequences.
  • mulp on November 16 2016 said:
    The best jobs program would be based on imposing $25, then $50, then $75, then $100 a barrel tariffs on imported oil Jan 20, 2017, 2018, 2019, 2020.

    Those tariffs would generate zero tax revenue so they would have zero cost to American consumers, nor increase the size of the Federal government.

    In fact, by making the Persian Gulf and Africa irrelevant to American security and economic growth, the defense budget would shrink, saving Americans trillions in wasteful spending over the coming decades.
  • GMan on November 16 2016 said:
    Or what?

    I think the US will get by fine without them, then what will the Saudi's do.

    It is well worth watching the Adam Curtis documentary "Bitter Lake" - you can easily find it on youtube.
  • Jay on November 16 2016 said:
    Now the dodgy, corrupt Sheikhs have started to warn the US? What's happening?
  • Marge on November 16 2016 said:
    Cartels by their very definition are the exact opposite of "free market". OPEC made trillions by manipulating prices. I think the US should make sure that the cartel does not survive.
  • Joe on November 17 2016 said:
    US government tariff revenue must balance tax cuts. An oil tariff up to $50/bbl goes a long way toward balancing the US budget. Feeding the fecund and growing Saudi population is not a US problem. You breed them. You feed them. A change of religious prohibitions on birth control is advised.
  • Jeffrey Mancuso on November 17 2016 said:
    The Saudi threats will only embolden Trump and will push even harder for oil independence...can't wait...finally! Drill on those Federal Lands! Open up wells, and let them know that their cartel isn't going to control us anymore...I love it...this, immigration, and tearing up NAFTA/Pacific trade agreement are the reasons I voted for trump...so awesome...so glad we have a president that has the ballz to do it...the big stick is back in town my friends...
  • Jorge on November 17 2016 said:
    The Saudi "Princes" are slowly figuring out that their days are numbered. The world of energy is changing and America has long been making moves for independence which the Saudis have tried to block at every turn. The Americans have upped their efforts (Keystone pipeline, fracking etc) since the Saudis started exporting their inbred control ideology worldwide (through the funding of thousands of radical mosques and imams) a behaviour that is affecting (in dramatically increasing proportions) their populace and the Western order. Of course such change is difficult because 1) the petrodollar (although US market is still formidable and US dollars will still be one of the reserve currencies like for example Japan) 2) Saudi Arabia likes them more than Iran (and they had a big hand in making Iran dislike them) 3) Saudi Arabia's money has probably entered the majority of American Congressmen's pockets. However even they have now realized a sinking ship's incoming. The moment Saudi Arabia facilitated the 9/11 bombings (for f**** knows what reason - probably the stupidest move in world politics) they began their countdown back to dust.
  • Doc James on November 17 2016 said:
    Think about it for a minute. The US has been sitting on oil reserves forever. I don't know the exact numbers but I do recall that the figure was astronomical in regards to us sustaining our own energy needs from our existing reserves.
    Now, if memory serves me, it was a tactic we reserved in case we needed to cut ourselves off from crude imports from the middle east. Millions of barrels of oil are in our "undisclosed" reserves.
    Saudi Arabia is feeling the backlash of what some may call their direct intervention into the destruction of our infrastructure. 9/11, in other words. The legislation passed for families of victims of 9/11 to sue Saudi Arabia for their part in the financing of terrorist attacks against our society and way of life, et al, the NY trade towers has been a monumental thorn in their side.
    Now, considering the backlash of all that, in conjunction with the fact that we (as a nation) have been sitting on multi-billion barrels of oil reserves, not to mention the knowledge of other unexploited deposits within our marked territories, we are well above and beyond being dependent upon these dealers of death.
    They believe they can get away with murder or genocide just because they believe they own the biggest piece of the oil pie. From what I've seen and observed, this simply isn't true.
    The time of chaos has been upon us for a few decades now. What is about to happen next is simply going to blow their minds because they know they have lost their leverage against us, but the real threat of financial retaliation is making them realize that Chaos is not their best friend. Chaos is about to end and that's what's got the entire planet in a craze.
    Chaos has ruled for too long and now, as the prophets have foretold, that reign is about to come to an end....
  • PrimaBallerina on November 19 2016 said:
    Close your eyes for a moment and picture Donald Trump's administration deciding upon and following through with banning oil imports from Saudi Arabia, the shortfall of medium and heavy crudes would have to come from other producers: Iraq? Iran? Russia? Venezuela? And everyone knows what closing a deal with Iran might mean and indicate.
    You truly can't blame these giants nor fathom the domino affect at hanf- the major oil companies, including Exxon and Chevron, which have significant political influence, will resist any efforts to restrict the choice of crudes available for their refineries. We can’t blame them for resisting this and swimming against trump’s stream.
  • Dan on November 19 2016 said:
    From what I've been told, refineries only need Saudi oil to 'flush out' the sulfur that builds up in the equipment. Otherwise, Saudi oil is not needed. It is only 11% of USA imports.

    Venezuela has ten times the oil reserves of Saudi, but it is very sour oil, and heavy. However, I do believe that there are refineries in the USA that can refine Venezuela oil. (And maybe Aruba.) People in Venezuela are hungry, and the USA could trade them food for oil. Thus escaping the 'petro-dollar'. It wouldn't matter how worthless the dollar was as the USA would be bartering.

    The USA and Russia together could make up the largest energy reserves on earth.
  • The Rock Vault on November 19 2016 said:
    The United States is like a junkie willing to go to any lengths to stay high because of the "Petro Dollar" based economy. How can Trump make America great again without a complete upheval of the economic system? It would be like the junkie going "cold turkey" and just immediately stopping doing drugs. The pain would be immense at first but would be better for long term health. I hope Trump can do it but I fear this is too immense of an undertaking.
  • NASA on November 20 2016 said:
    TRUMP is a biz man and the message to Saudi Arabia is clear : Lets negotiate the price.
  • Nick Wilson on November 22 2016 said:
    Every time I think about Saudi Arabia or OPEC I get this urge to go out and buy an electric car.
  • DGS on November 22 2016 said:
    So after the Saudi's increase production to cut prices to drive American oil companies out of business, they warn us that oil is a global market and Trump better not cut off Saudi oil, which would increase oil supplies for the rest of the world (not counting the USA) and drive prices down. Am I missing something??????
  • ganesh iyer on November 25 2016 said:
    trump is the greatest person in the history of united states .
    he will definitely lead the way to a better world .
    he calls a spade a spade ,thats what i like about him .
    true leader trump!
  • oak on November 27 2016 said:
    petro dollars. thats why.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News