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3 reasons why Republicans were given a choice break with lower oil prices




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President Trump and the Republicans fear that in recent months oil prices would be on Petrol prices will be displayed at a gas station near downtown Los Angeles on Friday, May 18, 2018. (AP Photo / Richard Vogel)

In June, the US oil benchmark , WTI, reached a three-and-a-half-year high, reaching $ 74 a barrel. If prices continued to rise on sanctions against Iran, American voters would blame President Trump and the Republicans The Republicans were inexplicably resetting Iran sanctions on Nov. 4, just two days before the midterm elections that Iran sanctions were the price of international sanctions l Benchmark May Increase to $ 100 per b (19659009) I have just spoken to King Salman of Saudi Arabia and told him that I would like to increase oil production in Saudi Arabia due to the unrest in Iran and Venezuela, perhaps up to 2,000 .000 barrel difference … prices too high! He agreed!

– Donald J. Trump (@realDonaldTrump) June 30, 2018

President Trump was visibly concerned and started a public campaign to pressure OPEC and its most powerful member, Saudi Arabia. His goal was to force them to produce more oil to counteract the expected decline in Iran. He talked to the Saudi king on the phone, he talked about it at rallies, and he sent a bunch of tweets about it. He wanted Saudi Arabia to produce more oil, and he believed that they owe it to the United States.

Now the president and the republicans seem to have dodged the political oil ball. The average gasoline price is still only [1945905] $ 2.84 . This is far enough below the $ 3 per gallon psychological barrier that it does not seem to cause a problem before Election Day. There are three reasons why oil prices have remained low, saving Republicans serious political headaches.

  1. The most important factor is that oil traders have realized that Iran actually produces and exports more oil than expected. In the spring, when oil prices rose sharply, some forecasts predicted that Iran's oil exports would decline much more than they actually did. The government Trump says it wants to stop all oil exports from Iran. Despite this policy, it is politically useful for the Trump administration that traders see Iran export about 2.2 million barrels a day. This has helped push down the price of oil as election day approaches. In fact, the oil price has fallen 12.5% ​​since its October high three weeks ago.
  2. Oil speculators may have been terrified of political intrigue in Saudi Arabia regarding the Jamal Khashoggi Affair . However, the gap between Saudi Arabia and the US has not affected oil prices. In fact, Saudi Arabia has committed to further increase its production. Perhaps this was an attempt to please the US, but regardless it has caused a drop in oil prices across the board.
  3. The stock market is falling. On Wednesday, the DJIA dropped over 600 points. While oil and equities do not move in parallel, the investor unit appears to be on the whole cautious. Maybe the midterm elections make even speculators uneasy. Perhaps the more significant negative economic signs will have an impact on investors. Regardless, when stocks fall steeply, oil is often too. (A very clear example: WTI's $ 110 decline in just seven months at the beginning of the 2008 financial crisis.

Saudi Energy and Oil Minister Khalid al-Falih (C) is at the start of a three-day conference in Riyadh, Saudi Arabia Called Future Investment Initiative (FII) on 23 October 2018. [FAGEZ NURELDINE / AFP / Getty Images]

Perhaps Trump's continued pressure on Saudi Arabia to increase its oil production has paid off – or perhaps only fortunately [19659018] US voters will not look at $ 3.00 or $ 4.00 per gallon of gasoline price when they vote on November 6.

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For the past few months, President Trump and the Republicans have was concerned that oil prices in the midterm elections would become very high.

Gasoline prices will be displayed at a gas station near downtown Los Angeles on Friday, May 18, 2018. (AP Photo / Richard Vogel)

In June, the American oil benchmark, WTI, hit a three and a half F year high, reaching over $ 74 a barrel. If prices continued to rise on sanctions against Iran, American voters would blame President Trump and the Republicans [1965-9022]. The worst thing for the Republicans was that they inexplicably restarted Iran's sanctions on November 4, just two days before the midterm elections. Some [1945905] analysts predicted that Iran's sanctions could cause the price of the international oil benchmark to rise to $ 100 a barrel.

President Trump was visibly concerned and started a public campaign to pressure OPEC and its most powerful member, Saudi Arabia to put. His goal was to force them to produce more oil to counteract the expected decline in Iran. He talked to the Saudi king on the phone, he talked about it at rallies, and he sent a bunch of tweets about it. He wanted Saudi Arabia to produce more oil, and he believed that they owe it to the United States.

Now the president and the republicans seem to have dodged the political oil ball. The average gasoline price is still only [1945905] $ 2.84 . This is far enough below the $ 3 per gallon psychological barrier that it does not seem to cause a problem before Election Day. There are three reasons why oil prices have remained low, saving Republicans serious political headaches.

  1. The most important factor is that oil traders have realized that Iran actually produces and exports more oil than expected. In the spring, when oil prices rose sharply, some forecasts predicted that Iran's oil exports would decline much more than they actually did. The government Trump says it wants to stop all oil exports from Iran. Despite this policy, it is politically useful for the Trump administration that traders see Iran export about 2.2 million barrels a day. This has helped push down the price of oil as election day approaches. In fact, the oil price has fallen 12.5% ​​since its October high three weeks ago.
  2. Oil speculators may have been terrified of political intrigue in Saudi Arabia regarding the Jamal Khashoggi Affair . However, the gap between Saudi Arabia and the US has not affected oil prices. In fact, Saudi Arabia has committed to further increase its production. Perhaps this was an attempt to please the US, but regardless it has caused a drop in oil prices across the board.
  3. The stock market is falling. On Wednesday, the DJIA dropped over 600 points. While oil and equities do not move in parallel, the investor unit appears to be on the whole cautious. Maybe the midterm elections make even speculators uneasy. Perhaps the more significant negative economic signs will have an impact on investors. Regardless, when stocks fall steeply, oil is often too. (A very clear example: WTI's $ 110 decline in just seven months from the start of the 2008 financial crisis.

Saudi Energy and Oil Minister Khalid al-Falih (C) is at the start of a three-day conference in the Saudi capital, Riyadh called Future Investment Initiative (FII) on 23 October 2018. [FAGEZ NURELDINE / AFP / Getty Images]

Perhaps Trump's continued pressure on Saudi Arabia to increase its oil production has paid off – or perhaps only fortunately [19659032] US voters will not look at $ 3.00 or $ 4.00 per gallon of gasoline price when they go to the polls on November 6.


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