By Barani Krishan
Investing.com – Trump tweets are back on the oil market and prices are under pressure.
Following the presentation of the Mueller report, President Donald Trump was politically revived on Thursday. His second tweet of the year called for lower oil prices and renewed his fight with OPEC.
New York-traded crude fell for a second consecutive day, losing 55 cents (0.93%), for a price of $ 58.86 a barrel, 1
The London Traded Oil benchmark fell 66 cents, or 1%, to $ 66.58. 19659008] As he leads battles on many other fronts, Trump has relied on Twitter to mitigate the rally in crude oil and cut fuel costs for Americans. US presidents have in the past feared that gasoline prices will be high during the election. Trump started his fight with OPEC last year and tweeted months before the US election in November about the need for lower oil prices. These tweets, along with generous sanctions later granted to buyers of Iranian oil, triggered one of the worst oil sales that WTI lost 25% last year.
The next elections will take place in November 2020. The moral victory Trump has achieved over the investigation of Russia is likely to cause him to prematurely launch his campaign and is expected to be one of the things he would look for until election day.
In Thursday's Tweet, Trump said, "Very important, OPEC is increasing oil flow, world markets are fragile, oil prices are getting too high, thanks!"
Here's another tweet he posted on February 25, reminding the producer group not to "do that." Oil prices are getting too high, "Trump said. "OPEC, please relax and take it easy." 19659005 The world can not carry out a price increase – fragile!
Even though the president continues to tweet on oil and OPEC continues to ignore him, the market may not react so favorably.
Instead of increasing production after his February tweet Saudi The factual leader of OPEC, Arabia, intensified its production declines. The Energy Minister of the Kingdom of Khalid al-Falih said to Trump, "Yes, we'll take it easy."
The modest WTI decline on Thursday was around 1% each and Brent was a sign that not many Trumps took too seriously this time. The last time he tweeted oil, the oil markets fell 3%.
"The President should remember that overall strong oil prices are a positive outcome for the economy, according to his own advisors," said Price Futures Group energy analyst Phil Flynn, a supporter of Trump's Campaign of the President against OPEC has criticized.
Apart from that, Trump has other tools to fight OPEC, such as allowing buyers of sanctioned Iranian oil to resume large imports when the waivers expiring in May expire and the oil is sold by the Strategic Petroleum Reserve the USA
. The oil rally could also be more exposed to headwinds as concerns about a potential US recession and a slowdown in China's economy accelerate.