Trump’s Desire For Lower Oil Puts OPEC In A Tight Spot

Key takeaways:

– Trump’s call for OPEC to lower oil prices is primarily aimed at increasing pressure on Russia, by squeezing its oil revenues which could compel Russia to end the war in Ukraine.

– However, his request can jeopardise his desire for “Drill baby, drill”.

– Ultimately, it’s a delicate balance between geopolitical strategy and domestic energy priorities.

– Given current market conditions, OPEC+ may choose to release some of the barrels initially planned for April, particularly if sanctions on Iran and other oil producers are further tightened.

– Since 2008, the shale revolution has been repeatedly underestimated, yet it has consistently demonstrated resilience, flexibility, and unexpected growth.

– Saudi Arabia has a much warmer relationship with the Trump Administration compared to its predecessor; the recent $600 Bn investment that Saudi Arabia announced it would be pursuing in the US is one manifestation of that relationship.

– Recent developments in the Middle East suggest that the worst may be over, albeit temporarily, but the challenge of achieving lasting peace remains.