It’s strange being an oil and energy stock trader these days. Of course, the policies coming from Washington always had an impact on where oil prices were headed, but it’s a brand-new thing to have the White House’s twitter feed as a regular source of risk for positions in oil and oil stocks.
I mean – really. I understand the President trying to coax OPEC into keeping gas prices low during a summer driving season right in front of a midterm election. Bush tried it, even making a specific trip to the Saudi kingdom. But that was when oil prices were screaming above $110 a barrel, and not just licking at $75 bucks – a price the old President Bush would have killed for. But this twitter barrage is just pathetic.
And Trump’s lack of understanding of the dynamics of OPEC and the global oil markets come through particularly clearly with every tweet he sends and FOX interview he gives.
Of course OPEC is ‘manipulating’ the price of oil – that’s precisely why OPEC was created – it’s virtually the definition of what a cartel DOES.
And naturally the Saudis will ply the President with the old ‘market balance and stability’ line as well – the readout of the telephone conversation between Trump and the Saudi king looked almost exactly like the conversations other Presidents have had in the past with Saudi Arabia on oil prices – and just as meaningless. But Trump, referring…