Expect higher oil prices as OPEC clashes with Trump
By Dr. Cyril Widdershoven – Berry Commodities – Global Head of Strategy & Risk
The ongoing turf war between U.S. president Donald Trump and OPEC+ where the oil market needs to be heading is again heating up.
With a barrage of accusations, Trump has resorted again to Twitter to call upon OPEC+ to reopen its valves and bring more crude on to the market to counter increasing prices. The reaction of OPEC+ has been muted, which goes to show that Saudi Arabia, Russia and the UAE are not at all inclined to answer Trump?s demands any longer. At the same time, the effects of Trump?s Twitter war with OPEC and Russia are also waning, as analysis is showing that the market reacts violently to a Trump tweet on OPEC but very quickly recovers to its old price levels. Trump?s anti-OPEC rhetoric is clearly losing importance and impact.