US President Donald Trump has launched a program to collapse in oil prices. To begin with, Trump criticized the actions of the countries belonging to OPEC, and demanded to immediately reduce oil prices. In parallel with this, Congress began to develop a bill to judge cartel manipulations of the oil market.
The bill is held under the working title No Oil Producing and Exporting Cartels Act (“No cartels for oil producers and exporters”). NOPEC is an example of the use of legal mechanisms in relation to the adversary, as it allows the United States to impose its legislation on the OPEC and OPEC + member countries. The United States seeks to weaken the union of Russia and Saudi Arabia, which is the foundation of OPEC +, in order to then disrupt the entire structure of OPEC and announce liberalization of the free market for world energy resources.
In practice, this will happen as follows: the United States will impose sanctions on state-owned companies associated with OPEC and OPEC +; then a second round of sanctions will take place against those who have not stopped cooperating with these organizations.
Oil Production: Russia and Saudi Arabia
These steps were enough for Saudi Arabia to start increasing oil production and partially curtail a deal with Russia to stabilize the situation on the oil market.
Saudi Arabia has increased production to record levels in 4 years and has been actively lowering selling prices for its grades of oil over the past 2 months.
It is worth noting that the volume of oil supplies to the United States was also increased. Oil supplies from abroad to the United States last week jumped from 8 to 9.01 million barrels per day due to Saudi Arabia, which increased exports by a third – up to 1.24 million barrels per day.
Citi analysts said Trump could crash oil prices to $ 45 per Brent in a year. According to OPIS analyst Tom Klose, the oil market is on the verge of strong movements that could drown quotes up to $ 50 per barrel.
Media: US Securities and Exchange Commission investigates Tesla
According to Fox Business, as well as the New York Times, an investigation is underway against Tesla and subpoenas have been sent to management.
This was announced on Wednesday, August 15, by the famous American financial journalist Charlie Gasparino, noting that “the US Securities and Exchange Commission (SEC) has stepped up an investigation into Tesla’s privatization plans, sending subpoenas on this issue and statements by Ilon Mask about guaranteed financing. ”
SCOOP: SEC ramps up investigation into Tesla privatization plans; sends subpoenas to Tesla regarding privatization plans and Musk’s statements involving “funding secured” -sources Subpoenas signal investigation has reached the “formal” stages – sources more now @FoxBusiness
– Charles Gasparino (@CGasparino) August 15, 2018
Gasparino added that regulators are investigating that Mask’s statements “were inaccurate,” while “Tesla has no guaranteed funding” to conduct the transaction.
The New York Times, citing an unnamed source aware of the investigation, confirmed that the US Securities and Exchange Commission sent a subpoena to Tesla.
CEO of Tesla Inc. Elon Musk on August 7, 2018 in a message on the social network Twitter announced plans to sell the company to private investors at a price of $ 420 per share, noting that the financing of the transaction is “guaranteed”. After this announcement, Tesla’s Nasdaq quotes rose 8%.
The Vesti.Ekonomika portal noted that this statement by Mask could be regarded as an attempt to manipulate the company’s shares.
Analysts at various investment banks initially expressed doubt about the possibility of such a deal.
A few days after Ilon Mask’s statement, several lawsuits were filed against him and Tesla with allegations of fraud.
At the same time, the Tesla board of directors, as reported by Reuters, still does not have any specific information about the “guaranteed financing” for the privatization of the company.
Investigation of Tesla by the US Securities and Exchange Commission may be delayed. However, it is likely that if in the near foreseeable future the head of the company fails to prove the presence of the declared “guaranteed financing”, Ilon Mask can repeat the fate of the former founder and head of Uber Travis Kalanik, who in 2017 lost his post of chief executive officer of the company after a series of scandals with his participation.
Following reports of an SEC investigation into Tesla, Nasdaq stock quotes fell by 2.4% on Wednesday, August 15, after trading at $ 338.10 a share, about 12% lower than a week ago. Mask’s publication of a “guaranteed financing” message.