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Home / Business / Trump fears the political price of oil spikes, market turmoil

Trump fears the political price of oil spikes, market turmoil

Both crises will test Trump's ability to handle his will on the world stage and the strategic viability of his foreign policy "America First." A tariff fight with China underlines the growing power competition. And Russia's role as a top energy producer with a keen interest in fixing global oil prices could open new fronts in an expanding confrontation between Washington and Moscow.

The president's Twitter account is usually a reliable indication of his frustrations and complaints of a tribute to George HW Bush on the day of his funeral, Trump's feed on Wednesday throbbed with concern at market-moving events.

In fact, he ventured to urge the ministers of the Organization of Petroleum Exporting Countries (OPEC) in Vienna not to curtail production, which could reverse one step The price of oil is falling and the effectiveness of new US sanctions, the under a new harsh policy against Iran will be affected.

"Hopefully the OPEC will keep the oil flows as they are, not restricted.The world does not want to see or not need higher oil prices!" Trump wrote:

. However, most analysts expect OPEC to cut production by up to 1

.5 million barrels a day to overcome overfilling, partly triggered by a previous US demand, more oil as a buffer against the impact of the new one To pump sanctions on Iran.

Not only could such a move lead to further volatility in world markets, it could also push up gas costs in the United States and end a period of low pump prices, particularly welcomed by lower-income workers in rural areas, Crucial to Trump's Political Base

A cutback in OPEC production could also cast doubt on the effectiveness of one of Trump's most controversial foreign policy moves: to bring Saudi Arabia closer, though the alleged Crown Prince Mohammed bin Salman of the Kingdom, the known as MBS, where murder is suspected by Jamal Khashoggi, Washington columnist in Turkey.

Trump is under tremendous pressure in Congress for advocating MBS, and the legislature is relying on ngdom to help build a weapons sale and sanction Ki. However, Trump partly justified his refusal to dismantle the Saudis, pointing out their importance in the global oil markets.

"Oil prices are getting lower, great, like a big tax cut for America and the world, enjoy $ 82. Thanks to Saudi Arabia, but let's go deeper!" Trump tweeted on November 21st.

Standing by the Saudis

Trump declared last month that he is in solidarity with the Saudis. This is the clearest expression of a foreign policy approach based on the idea that traditional American concern over human rights should be replaced by an effort to maximize the commercial advantage of the nation's foreign relations.

"We will not give up hundreds of millions of dollars in orders and give Russia and China the rights … that's a very simple equation for I'm going to make America great again," the president said.

But Trump's domestic involvement in Saudi Arabia is only getting worse.

A bipartite group of senators released a resolution Wednesday blaming the crown prince personally for Khashoggi's death.

The Senate Republicans are now in open and rare revolt against the Trump White House, raising the possibility of a veto-proof majority It may be that any attempt by the president to exercise control over Saudi politics is suspended becomes.

Top Trump Confederate South Carolina Republican Senator Lindsey Graham accuses the Saudis of a "demolition ball" that threatens US security interests in the region.

Trump critics believe the president's Saudi policy is also Influenced by his own business interests, a Washington Post report on Wednesday records that lobbyists representing the kingdom estimated an estimated 500 nights at his hotel in Washington, DC over a period of three months, shortly after being elected.

The Democrats plan to investigate the financial ties between Trump and the Saudis when they take control of the House of Representatives in January.

MBS may feel bound by US demands to limit the oil production levy if the public and the President's continued support are supported At a time when the Saudi prince is ostracized throughout the world. Although Saudi Arabia has a major impact on the country, OPEC can not influence that.

For example, Alberta, the Canadian oil-producing province, has announced plans to cut production to reverse supply, which has cut Canadian crude oil prices.

Another important aspect influencing OPEC is Russia, which is not a member of the organization, but shows signs that it is ready to participate in the production cutbacks.

Given the importance of high oil prices for the Russian economy and growing geopolitical tensions with the US, Trump's decision to cancel a meeting with President Vladimir Putin at the weekend in Argentina could not in any way mislead Moscow into giving the US a political foundation give.

Trump is also worried about a China duel

The oil price riddle and the temporary halt to a wage war that Trump negotiated with Chinese President Xi Jinping during the G20 summit this weekend an example of the gambling that Trump often undertakes with his unorthodox global leadership

A worsening trade war with China and rising oil prices, despite US demands, could have impetus that could weaken Trump's political support. His argument that the Americans under his leadership stand better and damage the strong economic growth – his best argument for a second term.

China's reprisals against billions of tariffs imposed on its exports have been designed to disproportionately target areas that Trump will support in 2020, including the agricultural states he won, such as Iowa in 2016. [19659002] Thus, while China cursed the election campaign and accused the Asian giant of stealing American industrial jobs as a strong message in the Midwestern United States, the measures Trump had taken to fulfill its promises had a political cost.

19659002] Trump's Twitter feed again reveals his current obsessions – he tweeted about his Xi trade deal seven times in the last 36 hours. His efforts were part of a crackdown on the President and other senior officials to underpin an agreement with the Chinese, which in retrospect appears even less comprehensive than it originally appeared.

"Very strong signals are being sent from China returned home from Argentina after returning from its long journey, including stops," Trump tweeted on Tuesday.

"Not to sound naïve or anything like that, but I think President Xi meant every word of what he said in our long and hopefully historic meeting ALL topics discussed!"

The Dow Jones Industrial Average collapsed On its last trading day on Tuesday, it gained nearly 800 points as investors realized that the agreement between Trump and Xi could not stem the hostilities long.

"This Tariff Situation" It's still a big deal on the market, "JJ Kinahan, Chief Market Strategist at TD Ameritrade, told CNN on Tuesday.

On Wednesday, however, China decided to resolve some of these concerns, after initially being reluctant to give details of what it had signed to upset the markets and annoy Trump.

Beijing belatedly acknowledged a 90-day watch for discussion and reaffirmed its willingness to "already agreed Specific steps as soon as possible, "a move Trump noted as he tweeted about" very strong signals. "

The White House also says the deal with Xi China will buy large quantities of American agricultural produce Products to close the trade deficit and include an agreement by Beijing to curb the flow of fentanyl, a powerful opioid, into the US

In G In response, Trump agreed to withhold plans to raise all applicable duties to 25% on 1 January.

Trump's frequent bullish run in the first two years of his presidency has recently been a source of concern about the look of the stock markets, which have given up most of the stock markets.

The Wall Street Journal reported last month that Trump got Treasury Secretary Steven Mnuchin partly because of volatility on the stock markets, his support of the Federal Reserve's President Jerome Powell, and a more conciliatory attitude towards China than some Hawkish advisers from the White House insults.

Trump denied the report, but added the impression that the President was increasingly concerned about how the economic turmoil abroad could weaken his political viability at home.

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