Trump Sends Crude DMs to Crown Prince 📲

Table of Contents

Trump Sends Crude DMs to Crown Prince

On a normal day, the world drills about one hundred million barrels of oil. It consumes about the same, so we have an equilibrium. That equilibrium keeps prices stable. But if supply and demand get out of balance by just a few hundred thousand barrels, things get messy indeed.

Thanks to coronavirus and gung-ho drilling from kleptocrats in the Middle East, these are not “normal” days. We’re currently running up a two-billion-barrel surplus of Brent. Not good. That’s toothpaste out of the tube, nobody can force it back in, and Russia, Saudi Arabia, Congo, and Nigeria are the main culprits. This was no accident!

Their villainous goal is to crush oil prices because if they succeed (as they are currently), shale stocks will plummet as those companies starve. They need higher oil prices. The Saudis have been preparing a kill-shot of maximum output capacity drilling, and if shale falls completely, the Lukoils, Gazproms, and Saudi Aramcos of this world will hit it big on their respective stock exchanges.

Whiting Petroleum has already collapsed, and you can bet there’s more suffering coming down the pipeline (and more oil). It was only a matter of time before the West retaliated in this war, and Trump spoke.

You don’t need to see the tweet. You can guess. He called the Saudi Crown Prince a “friend” of his and promised the desert drillers would cut back production by ten million barrels per day. This jolted the price of oil. It rose an incredible 25% in eight minutes. However, the level didn’t hold after the Saudis rebutted. They said they agreed to no such cutback.

Diplomacy can be very hit and miss, and although Trump likes cheap gas at the pump to keep voters happy, there’s a very real crisis in oil storage. It’s no wonder he’s “friends” with bin Salman over the negotiating table right now. However, that could all change if production cuts aren’t forthcoming.

If President Trump is to get his way another way, be it through trade barriers or troops on the ground, think of how many more stocks could get dragged into the mix!

Share:
More Posts
The Crude Oil Bust 🛢

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Metaverse Returns 🤖

Meta, led by CEO Mark Zuckerberg, is intensifying its commitment to innovation in the Metaverse through the introduction of the Quest 3 VR headset.

Higher Rate Households 📈

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.