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President Trump told Saudi Crown Prince Mohammed bin Salman that if he did not cut oil production, then the US would withdraw military support. Without US Military support, the House of Saud would fall very quickly, so this was an offer that MBS could not refuse. And he did not refuse.
In an April 2 phone call, Trump told Saudi Crown Prince Mohammed bin Salman that unless the Organization of the Petroleum Exporting Countries (OPEC) started cutting oil production, he would be powerless to stop lawmakers from passing legislation to withdraw U.S. troops from the kingdom, four sources familiar with the matter told Reuters.
Trump delivered the message to the crown prince 10 days before the announcement of production cuts. The kingdom’s de facto leader was so taken aback by the threat that he ordered his aides out of the room so he could continue the discussion in private, according to a U.S. source who was briefed on the discussion by senior administration officials.
The effort illustrated Trump’s strong desire to protect the U.S. oil industry from a historic price meltdown as governments shut down economies worldwide to fight the virus. It also reflected a telling reversal of Trump’s longstanding criticism of the oil cartel, which he has blasted for raising energy costs for Americans with supply cuts that usually lead to higher gasoline prices. Now, Trump was asking OPEC to slash output.
Some people are pleased to see the US oil industry devastated and hundreds of thousands of people loose their jobs in this industry - mostly pretty good paying jobs. In some cases, this is because they support an insane environmental agenda which is simply not achievable at the current time, regardless of their naive fantasies to the contrary. Others are just plain short sited and selfish, as they like the cheaper gasoline prices they have to pay to fill their cars.
We need to be as self sufficient in oil as we can be until the technologies are developed to provide transportation in a way that is superior to that provided by petroleum based fuels. We are not there yet. We are not particularly close to being there yet. Some day, I expect we will get there, but it will be decades at least.
President Trump's bold move is a well timed come-uppance for a dictator and a regime that has gotten too big for their proverbial britches. In response, the Saudis are backing down and increasing production. It may be a while before we see the full results, as there is such a huge surge in oil in storage right now as a result of the lower demand from the worldwide shutdowns, that the prices are going to take a while to recover.
However, WTI is back up to $18.91 just a little while ago. That is up over $2 a barrel in just a few hours. So that is progress, in any case.
He is offering Saudi Arabia to Iran & Russia on a silver platter.
If they refused to stand down, perhaps. But that would mean the fall of the House of Saud, which is literally an existential threat for MBS. So he stood down.
Would Obama have taken such bold leadership? Or Joe Biden? Bwahaha.
President Trump told Saudi Crown Prince Mohammed bin Salman that if he did not cut oil production, then the US would withdraw military support. Without US Military support, the House of Saud would fall very quickly, so this was an offer that MBS could not refuse. And he did not refuse.
Some people are pleased to see the US oil industry devastated and hundreds of thousands of people loose their jobs in this industry - mostly pretty good paying jobs. In some cases, this is because they support an insane environmental agenda which is simply not achievable at the current time, regardless of their naive fantasies to the contrary. Others are just plain short sited and selfish, as they like the cheaper gasoline prices they have to pay to fill their cars.
We need to be as self sufficient in oil as we can be until the technologies are developed to provide transportation in a way that is superior to that provided by petroleum based fuels. We are not there yet. We are not particularly close to being there yet. Some day, I expect we will get there, but it will be decades at least.
President Trump's bold move is a well timed come-uppance for a dictator and a regime that has gotten too big for their proverbial britches. In response, the Saudis are backing down and increasing production. It may be a while before we see the full results, as there is such a huge surge in oil in storage right now as a result of the lower demand from the worldwide shutdowns, that the prices are going to take a while to recover.
However, WTI is back up to $18.91 just a little while ago. That is up over $2 a barrel in just a few hours. So that is progress, in any case.
Did you even read the article you cited? It says that Trump told the Saudis that unless they cut oil production CONGRESS would pass legislation to stop military support - NOT THAT HE WOULD because he does not have that authority anyway (just like Ukraine if you remember). Fear Nancy!
If they refused to stand down, perhaps. But that would mean the fall of the House of Saud, which is literally an existential threat for MBS. So he stood down.
Would Obama have taken such bold leadership? Or Joe Biden? Bwahaha.
Yes, it would be end of house of Saud, and expansion Iranian influence.
I dont know if this is bold leadership, or just an unplanned and reckless move. Trump has dishonored lot of agreements, and threatened to dishonor others, so he is fast-tracking US to become an ally who cannot be trusted.
Obama? Who knows, the Saudis didn't play him like they play Trump, so he didn't end up in these situations. I suppose good leadership prevents stuff by being pro-active rather than Trump style reactive. It is better to prevent a fire, rather than try to fight it when its already raging.
Either way, I hope the US oil gets on its feet again one way or another.
PS It seems Trump is denying he said it.
Last edited by Finn_Jarber; 04-30-2020 at 02:36 PM..
Did you even read the article you cited? It says that Trump told the Saudis that unless they cut oil production CONGRESS would pass legislation to stop military support - NOT THAT HE WOULD because he does not have that authority anyway (just like Ukraine if you remember). Fear Nancy!
President Trump is also required under the constitution to ratify any such legislation for it to become law. And it is the exective branch of our government - President Donald J. Trump, presiding - who is responsible for us carrying out our foreign policy and negotiations with other nations and national leaders.
What is better? Escalating this conflict by producing legislation targeting one of our few allies in that region? Or negotiating and deal that allows everyone an out and a path to a better place, which is based on their own choice?
The path that President Trump is providing leadership for here is the more mature and more constructive, better path. This was an excellent move by President Trump. And again, this kind of bold and effective leadership is not what we would have gotten from Barack Obama, or that we would ever see from Joe Biden.
President Trump is also required under the constitution to ratify any such legislation for it to become law. And it is the exective branch of our government - President Donald J. Trump, presiding - who is responsible for us carrying out our foreign policy and negotiations with other nations and national leaders.
What is better? Escalating this conflict by producing legislation targeting one of our few allies in that region? Or negotiating and deal that allows everyone an out and a path to a better place, which is based on their own choice?
The path that President Trump is providing leadership for here is the more mature and more constructive, better path. This was an excellent move by President Trump. And again, this kind of bold and effective leadership is not what we would have gotten from Barack Obama, or that we would ever see from Joe Biden.
We get it. The Kenyan born terrorist ISIS leader Obama is bad and Golden Haired Angelic Genius Trump is all that is good on earth. Has he walked on water yet? geeeeeeeeez. Its gotta be exhausting bowing and kissing your dear leaders feet that many times a day.
President Trump is also required under the constitution to ratify any such legislation for it to become law. And it is the exective branch of our government - President Donald J. Trump, presiding - who is responsible for us carrying out our foreign policy and negotiations with other nations and national leaders.
What is better? Escalating this conflict by producing legislation targeting one of our few allies in that region? Or negotiating and deal that allows everyone an out and a path to a better place, which is based on their own choice?
The path that President Trump is providing leadership for here is the more mature and more constructive, better path. This was an excellent move by President Trump. And again, this kind of bold and effective leadership is not what we would have gotten from Barack Obama, or that we would ever see from Joe Biden.
It is always better to let the market work it out. Using US military aid as a tool to manipulate oil markets in favor of US multi-nationals and their billionaire investors is bad policy. It's how we got into quagmires like Iraq.
We get it. The Kenyan born terrorist ISIS leader Obama is bad and Golden Haired Angelic Genius Trump is all that is good on earth. Has he walked on water yet? geeeeeeeeez. Its gotta be exhausting bowing and kissing your dear leaders feet that many times a day.
Black Man Bad.
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