The price of oil got lowered by 3% after Donald Trump wrote a message on social media and urged OPEC to consider price relaxation. Using his Twitter account, Mr. Trump wrote that oil prices are all time high and OPEC should do something about it as people can’t bear such a hike in price.
The tweet posted by Mr. Trump on Monday is a mark for criticism which he had delivered to OPEC. President Trump hadn’t commented against OPEC since last December, back then the oil-producing giant and 10 other allied nations negated Trump’s call for providing a high quantity of oil in the market. On the contrary, OPEC had cut 1.2 million barrels of oil from the consumer market.
Due to this, OPEC got the deal, after the price of their oil shrink to 40% back in 2018. At first, OPEC started to curb their output in 2017 so that they can put an end to the downturn but in June 2018 they increased the prices all over again. The step took ahead of Trump’s sanction to Iran. Under the sheer pressure, OPEC started to increase the price of oil back in November 2018. That month the US sanctioned some of the customers of Iran to import the oil in the country.
At present Saudi Arabia has planned to cut back the pumping of the Oil to 9.8 million bpd, which was once 11.1 bpd in November 2018. Last month, Trump government again created disruption by disallowing the crude trade with Venezuela. That has created a great deal of nuisance for crude oil refineries in the US.
In one of his tweets, last year trump had stated that crude oil shouldn’t have a selling price higher than $40 per barrel and it is ideal to trade it for $25 per barrel. According to learned economists, crude oil selling at that price will cause stagnancy in the economy and will bankrupt many organizations.