US National Security Advisor John Bolton resigns sending oil prices lower. Bolton was often at odds with the president disagreeing on foreign policy issues. President Trump says he fired Bolton (because King Donny always needs to look like the man in charge). Trump told Bolton to sleep on it overnight but after the meeting ended, he ran to Twitter announcing that he fired Bolton. Comically, the two cannot even agree on how Bolton leaves the Whitehouse. The baby saga is truly Trumpian.
Bolton was not winning any popularity contest with the Trump administration; he probably was never invited to the Friday afternoon cake and ice cream parties at the Whitehouse. The departure shows that Trump does not want anyone around him that disagrees with his vision, and this is his prerogative. What you typically find throughout history, however, is that great leaders employed advisers that often disagreed and provided different perspectives to their bosses. Weak leaders fill their cabinet with yes men and women.
Bolton is well known as a hawk on foreign policy and that is the media narrative. He told the president that his proposed Taliban summit at Camp David was not a good idea especially with 9-11, Patriot Day, on tap tomorrow. Trump demands blind loyalty and does not tolerate anyone disagreeing with his narcissistic brilliance. Not only that, King Donny does not ever like to be shown-up in public. If you up-stage Donny, look out, you are toast. That is what happened to Tillerson, now Bolton. Trump cancelled the Taliban meeting and instead adopts Bolton's position but fires the guy for being correct. That's funny. You must be subservient if you work for the president and constantly provide praise and adoration for the orange-headed politician. Pompeo and Mnuchin kneel in front of him each morning licking the gum and sidewalk sputum off the bottom of his wingtips.
Bolton differed from Trump on many issues including Afghanistan, Iran and Venezuela. Since Bolton is a known hawk, there was a premium in the oil price. Traders were concerned that Bolton's hawkishness would find Trump's ear and conflict would escalate in Iran and/or Venezuela. Conflicts will disrupt the oil patch and cause supply disruptions. Problems with supply lead to higher oil prices.
Bolton wanted to see retaliation against Iran for the drone attacks and the seizure of oil tankers but Donny is taking a softer tone now and balked at any military response against the rogue nation. Since Bolton has bolted, the premium to oil prices immediately evaporates. West Texas drops from 58.75 as the news of Bolton's resignation broke, to 57.35. So the Bolton premium can be physically measured at a buck-forty.
The turmoil at the Whitehouse continues with over 40 people, hand-picked by President Trump, resigning or being ousted over the last 2-1/2 years; it's a revolving door. Trump is a micro-manager even far more than his predecessor Emperor Obama. Donny only appoints figure-heads to each department that are willing to act like lackeys carrying out any demand or whim no matter how odd or infantile.
Comically, Trump says he only hires the smartest and best people; this praise occurs when he brings in someone new. When that person departs the Whitehouse, Trump denigrates him or her as incompetent, a loser and the worst human on earth. It is hilarious. A month ago, Donny said Bolton was doing a great job. Crony capitalism in America is playing out its last months and years currently so most of this political theater is moot. 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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