27.01.2023

Trump decided to play against high oil prices

The US President Donald trump has embarked on a program to the collapse in oil prices. For starters, trump criticized the actions of the countries in OPEC, and has demanded immediately to reduce oil prices. In parallel with this, the Congress began drafting a law that allows trial for a cartel manipulation of the oil market.

The bill is tentatively called No Oil Producing and Exporting Cartels Act (“No cartel of producers and exporters of oil”). NOPEC is an example of using legal mechanisms in respect of the opponent, as it allows US to impose legislation by the member countries of OPEC and OPEC+. The US is trying to weaken the Union of Russia and Saudi Arabia, which is the basis of OPEC+, and then to break up the OPEC to announce a liberalization of free global energy market.

In practice, this will occur as follows: the United States will impose sanctions against state companies associated with OPEC and OPEC+; followed by a second round of sanctions against those who did not stop the cooperation with these organizations.

Oil production: Russia and Saudi Arabia

Data steps was enough for Saudi Arabia to begin to increase the volume of oil production and partially collapse the deal with Russia to stabilize the situation in the oil market.

Saudi Arabia has increased production to record levels for 4 years and actively reduced selling prices for its crude oil grades for the last 2 months.

It should be noted that there was also increased volumes of oil supplies in the United States. The supply of oil from abroad in the U.S. last week jumped from 8 to 9.01 million barrels per day at the expense of Saudi Arabia, which increased its exports by one – third to 1.24 million barrels per day.

Analysts at Citi think that the way trump could collapse in oil prices to $45 for Brent in a year. According to OPIS analyst Tom Kloza, the oil market is on the verge of strong movements, which can drown quotes up to $50 per barrel.

Media: the Commission on securities and exchange Commission is investigating against Tesla

According to the channel Fox Business, as well as the New York Times, against Tesla under investigation, the company sent the summons.

On Wednesday, August 15, said the famous American financial journalist Charlie Gasparino, noting that “the Commission on securities and exchange Commission (SEC) intensified its investigation into the privatization plans of Tesla, sending agenda on this issue and statements by Elon musk about the “guaranteed financing”.

Gasparino added added that regulators are investigating due to the fact that the statements Mask “was inaccurate”, while “at Tesla there is no guaranteed funding” for the transaction.

The New York Times, citing an unnamed source knowledgeable about the investigation, confirmed that the Commission on securities and stock exchanges of the USA has sent a summons to the address of the Tesla.

Tesla CEO Inc. Elon Musk August 7, 2018. in a message on the social network Twitter has announced plans for the sale of the company to private investors at a price of $420 per share, noting that the funding of the transaction is “guaranteed”. After this message, quotes Tesla on the Nasdaq increased 8%.

The Portal “News.Economy” noted that the statement from the Mask can be regarded as an attempt of manipulation of shares of the company.

Analysts at various investment banks initially expressed doubt of the possibility of such transactions.
A few days after the statements of Elon musk against him and Tesla were filed several petitions with allegations of fraud.

The Board of Directors of Tesla, as reported in Reuters, still did not have any specific information about “guaranteed financing” on privatization of the company.

The investigation against Tesla by the Commission on securities and stock exchanges of the USA may be delayed. However, it is likely that if in the foreseeable future, the company will not be able to prove the existence of the claimed “guaranteed financing,” Elon Musk may repeat the fate of the former founder and the head of Uber Travis Kalanick, who in 2017, lost his position as chief Executive officer of the company after a series of scandals with his participation.

After reports of an SEC investigation concerning Tesla quotes of the company on the Nasdaq on Wednesday, August 15, fell 2.4% closed trading at around $338,10 per share, which is approximately 12% below the levels shown a week ago, on the day of publication of the Mask reports of “guaranteed financing”.

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