Trump is creating panic in the foreign oil industry… and that is a good thing for American oil producers.
According to reports, OPEC members are severely worried about the significant increase in oil products by U.S. oil suppliers.
Oil Prices Falling
It is no secret oil producers regularly cut production to drive prices.
This is something Trump was aware of as well, and something he promised to address while he was campaigning for president.
After Trump took over the office, U.S. oil production started to increase significantly.
So much so, in fact, products levels are now at their highest in almost two decades.
The last time U.S. oil producers were putting out these types of numbers was back in 1999.
In addition to increasing U.S. oil production, President Trump started to put pressure on other oil-producing countries to do the same.
To help offset a steady uptick in prices, the President reportedly reached out to both Saudi Arabia and Russia demanding they increase their oil production.
Quietly, both countries have done just that, leading to a bearish market in oil prices.
Crude futures here in the United States fell by some 11 percent in recent weeks, from $76.90 to $68.47.
Brent crude went from a high on October 3 of $86.74 to $78.69 a barrel.
The reason for the massive shift is a massive stockpile of U.S. crude, up over 22 million barrels as of last week, something we have not seen since 2015.
The recent tensions over the alleged torture and murder of journalist Jamal Khashoggi have also contributed to the some of the speculation in oil futures.
Trump has promised sanctions against Saudi Arabia if they are found to have masterminded the murder. In response, the Saudi’s have threatened to cut back production and exports
However, most pundits believe this is nothing more than an empty threat, as it would do significant harm to the Saudi economy to follow through, especially with U.S. stockpiles so high right now.