Tankers carrying some 35 million barrels of Saudi oil are about to hit the shore of the United States, dealing another blow to the US shale patch, while the administration in Washington watches and hopes that the unfolding drama does not gain too much attention ahead of November elections. The oil and gas industry, of course, thinks that if it’s not getting any sort of bailout, it should at least be protected from cheap oil dumping by foreign countries in a time of desperate need.
That situation led on Thursday to rumors that Trump was threatening to withdraw military support for Saudi Arabia over the Kingdom’s role in the oil price war, ongoing production battles, and the 35 million barrels about to be dumped on US soil.
Speaking on national television, Trump was vague about any measures to be taken against this greatest of US allies. When asked to confirm, Trump said, “I don’t want to talk about it”, and noted that the administration was “doing some things”, though he continued to defend the Kingdom: “Saudi Arabia is a very wealthy country and they’ve agreed to help defray some of the costs, which nobody else would ever ask for,” the President said about the alleged military moves, adding that “if we’re going to defend countries, they should also respect us by making a contribution.”
Behind the vague “doing some things” is this, and the devil, as always,…
Tankers carrying some 35 million barrels of Saudi oil are about to hit the shore of the United States, dealing another blow to the US shale patch, while the administration in Washington watches and hopes that the unfolding drama does not gain too much attention ahead of November elections. The oil and gas industry, of course, thinks that if it’s not getting any sort of bailout, it should at least be protected from cheap oil dumping by foreign countries in a time of desperate need.
That situation led on Thursday to rumors that Trump was threatening to withdraw military support for Saudi Arabia over the Kingdom’s role in the oil price war, ongoing production battles, and the 35 million barrels about to be dumped on US soil.
Speaking on national television, Trump was vague about any measures to be taken against this greatest of US allies. When asked to confirm, Trump said, “I don’t want to talk about it”, and noted that the administration was “doing some things”, though he continued to defend the Kingdom: “Saudi Arabia is a very wealthy country and they’ve agreed to help defray some of the costs, which nobody else would ever ask for,” the President said about the alleged military moves, adding that “if we’re going to defend countries, they should also respect us by making a contribution.”
Behind the vague “doing some things” is this, and the devil, as always, is in the details: The US is withdrawing two Patriot missile batteries and some fighter aircraft from KSA, and while unnamed officials have been keen to take advantage of the potential PR here by saying that the move comes amid tensions between the two over oil production, the fact is that this is not a punishment for the Saudis. They are leaving behind two additional Patriot batteries and other air defense systems and jet fighters. What they’re really doing is balancing it out as they attempt to shore up military presence in Iraq to preempt Iranian moves there.
In the meantime, withdrawing some defense forces from Saudi Arabia does nothing to help the American shale patch in the face of a Saudi oil dump.
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