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What will OPEC choose: Trump's anger or oil slump

Oil

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This becomes a known choice for OPEC: it risks the pain of falling oil prices or provokes the anger of President Donald Trump.

After another Twitter alert, Saudi Arabia and its allies are again faced with a dilemma in order to avoid rising raw materials: Maintaining cuts in production and rejecting a president who may impose legislation that shakes the group to its foundations. Or play on his whistle and risk a price collapse that ravaged their economies last year.

The oil-exporting organization did not have an official response to Trump's statement, but three Gulf oil officials said the group had learned from its mistake in 2018 when calling Trump to accumulate more crude oil created an excessive supply.

"I think they will send this call directly to the voicemail given the November experience and the fact that it has all the hallmarks of a self-inflicted wound," says Heliwa Croft, chief strategist at RBC Capital Markets LLC in New York.

The president renewed his pressure on OPEC and its allies after a new round of cuts in production began last month. The group's shrinking supplies, as well as the US sanctions against Venezuela and Iran, have contributed to rising commodity prices by more than 20% this year.

Source: Bloomberg Finance L.P.

Original Post: OPEC Again Faces Choice Between Trump's Wrath and Oil Slump


 Trader Aleksandar Kumanov

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