Trump Criticizes OPEC for Rising Gas Prices

President Trump has continued his inefficient and threat-based approach to foreign policy by targeting the Organization of the Petroleum Exporting Countries (OPEC) in a recent tweet.

His statements follow a constant rise in American gas prices. OPEC’s members previously agreed to increase their oil production, and while this measure could end up helping the market, its effects have not yet been felt in the U.S.

Trump’s tweet included an all-caps order at the end, which was most likely targeted to intimidate rather than to push new legislation forward or engage in dialogue with the organization.  Trump’s tweet read:

“The OPEC Monopoly must remember that gas prices are up & they are doing little to help. If anything, they are driving prices higher as the United States defends many of their members for very little $’s. This must be a two way street. REDUCE PRICING NOW!”

There is still a lack of consensus over the recent price of a gallon of oil. According to the AAA, the price of oil significantly increased during Independence Day celebrations, reaching a high point of $2.86 for each gallon. This price is the highest it has been in four years. However, OPEC disagrees with this, saying that this price was cheaper than the average cost during Memorial Day weekend.

Trump also mentioned that during a recent phone call with the King of Saudi Arabia, the Saudi leader mentioned the possibility of his country increasing oil production “up to 2,000,000.” Saudi Arabia confirmed the communication with Trump, yet denied that any objectives or targets were discussed.  Trump’s interactions stand in sharp contrast to his relations with Iran, which have drastically changed since he pulled out from the 2015 nuclear deal.

Trump’s demands for OPEC and Saudi Arabia to lower their oil prices are probably fueled by his wish to recover all the Iranian oil imports that the U.S. was previously receiving.  The prices between Brent crude oil and U.S. benchmark crude oil reportedly differed quite a bit on Wednesday, as the former was $78.16 a barrel and the latter $74.14 a barrel.

Saudi Arabia has become a key oil provider for the U.S. and the world, as it is believed that they usually produce about ten million barrels of crude oil a day. Trump’s tweet did not specify whether the two million barrels would increase per day or per month, or when this target would potentially be achieved. Statements from Saudi officials have also been a bit unclear, as some have said that there is spare capacity for two more million barrels per day, and others that oil companies in the country will stick to the one million barrel increase.

The latter was stated by Saudi Energy Minister Khalid al-Falih, who referenced the agreement between OPEC members. He said:

“Saudi Arabia obviously can deliver as much as the market would need, but we’re going to be respectful of the 1-million-barrel cap — and at the same time be respectful of allocating some of that to countries that deliver it.”

Featured Image via Wikimedia Commons