US behavior in the international arena often raises a lot of questions because of its illogical and sometimes arrogance. Recent statements by the American leader regarding the oil market is another confirmation of this.
Donald Trump criticized OPEC, saying the cartel – including Russia – is manipulating prices. Trump called on Saudi Arabia to maximize production to make up for supply shortages due to reduced production in Venezuela and Iran.
For some reason, the US leader does not note that the reasons for the decline in production in these countries are largely the actions of the United States. It was the States that declared that Tehran was not fulfilling the terms of the nuclear agreement, and decided to resume the sanctions regime, as a result of which many buyers of Iranian oil began to refuse supplies.
The economic problems of Venezuela, of course, cannot be fully explained by the actions of the United States, but Washington has been stubbornly disrupting this country for a long time, and the deepest crisis in Venezuela is partly the work of the Americans.
It is also worth noting Libya, where exactly the United States carried out a coup, and now political instability is constantly maintained there. Recently it became known that East Libya has stopped exporting oil. The country said it was losing about 850 thousand barrels of oil on a daily basis, with daily losses of $ 67.4 million. This is due to the closure of oil ports and fields and the cessation of export operations by authorities in the East.
Production and export operations were suspended in Libya earlier this week after the Libyan army, led by General Khalifa Haftar, announced the transfer of oil ports and fields to an oil institution associated with the interim government in Eastern Libya, instead of transferring them to an oil institution, affiliated with the Government of National Accord in Tripoli.
Haftar’s decision led to a conflict between authorities in eastern and western Libya, after ships were prohibited from loading at large oil ports.
In general, almost everywhere where there is a drop in production, the Americans could not do without it. But Washington says that it is OPEC, and not the United States, that manipulates hydrocarbon prices. The US also does not consider it necessary to mention that it was the increase in oil prices that allowed shale companies to increase production to a record, and the United States itself to set a record for exporting “black gold”.
Now, apparently, oil prices are really rising too quickly, which is reflected in the price tags at gas stations. Concerned about the impact of gas prices on mid-term elections, the Trump administration is aggressively lobbying for increased production.
Recall also that OPEC + decided to prevent supply shortages in the market and increase production by 1 million barrels per day. In Russia, by the way, production for June has already grown from 10.97 to 11.06 million barrels per day.
Add that earlier “News. The economics ”reported that the US is also preparing a very concrete blow to OPEC. A bill “Against Cartels for the Production and Export of Oil”, which, in fact, has existed for 18 years, was submitted to the US Congress at the end of May. The document outlaws cartel conspiracies in the black gold market and proposes to extend to OPEC the action of the Sherman antitrust act, which was used more than a hundred years ago to fragment the John Rockefeller oil empire.
The bill has already overcome the first obstacle: last week it was approved by the Legal Committee of the House of Representatives, writes finanz.ru. Since 2000, congressmen have repeatedly tried to pass this law, but both George W. Bush and Barack Obama have threatened to veto it.
In 2007, it was approved by both the Senate and the House of Representatives, but the president refused to sign. But with Trump, a completely different story. For over 30 years he has been actively criticizing OPEC in his books and public appearances, arguing that the cartel is “robbing American citizens.” In addition, Trump has already noted radical behavior, starting, in fact, a “trade war” with China, the EU and other countries.