It's another day so its another drop in oil prices after President Trump's actions. Yesterday, oil prices fell on news that National Security Advisor Bolton resigned (the president says he fired Bolton). Bolton is a war and conflict hawk so his leaving the Whitehouse means tensions in Iran ease and oil supply shock concerns are reduced so oil prices fell.
Today, President Trump is softening his stance on Iran, now that hawk Bolton is gone, and oil prices plummet again when the news hit (red box). As tensions relax in the Middle East, the premium in oil prices dissipates. Oil was up +1.4% and fell -2.5% a -4% intraday collapse. Trump may soften sanctions against Iran after he berated President Obama years ago for reducing sanctions right when the rogue nation was getting squeezed hard.
Obviously, Donny is thinking about one thing only; re-election. Everything Trump does over the next year will be focused on helping his re-election campaign. All these politicians, the demopublicans and republocrats, are the same; two sides of the same coin.
Another motive for President Trump making nice with Iran is to see oil prices drop especially right in front of the holiday shopping season. Trump desperately wants to keep the economy going into next year's November election and will do whatever it takes. Lower oil prices provide lower gasoline prices and will make for happier consumer sentiment and sustained retail spending (and voters more likely to re-elect Trump).
Tomorrow is another day. Donny will no doubt comment on the ECB's decision and Draghi press conference in the morning. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note: Chart is provided by CNBC and annotated by Keystone.
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