OTCPK:ICPVF - Post by User
Post by
TheBridgeon Apr 03, 2020 11:28am
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Post# 30875921
Something To Consider
Something To ConsiderJust finished reading an article "Trump Eyes Global Output Cut of 10 Million barrels a Day" on finance.yahoo.com and it raised some concern with me. Along with Trump's want to have production cut, the article states that it suspects that for Russia and the Saudis any proposed curbs would be conditioned upon every other major oil producer also agreeing to reduce production.
"Sauid Arabia wants countries that aren't part of the OPEC+ alliance to join in any future pro-rationing. Although Riyadh hasn't drawn up a formal list, in the past OPEC+ had invited big American producers, Brazil and Canada to its meetings. Both Canada and Brazil have previously declined."
And under, Import Tariffs.
"The White House has considered tariffs on foreign oil imports to protect U.S. producers, though the idea is opposed by some top Trump advisers led by Larry Kudlow, the director of the National Econmic Council, according to people familiar with the matter."
And under, Eport Limits.
"A chief argument is that dialing down U.S. production is not aligned with the president's "America First" agenda, said a person familar the matter who asked not to be named discussing lobbying strategy. For his part, Trump said Thursday that he had not discussed the possiblility of U.S. oil production cuts."
Now Tump's America First and his treatment of allies and his neighbors is a real worry for me. Imagine that production cuts are agreed to by both Russia, Saudis, and the OPEC+ group which would include U.S., Canada and Brazil. How much of a possibility is there that Trump could simply force Canada to reduce it export of oil into the U.S. so that the U.S. could use their own oil and export only their own oil and tariffs on Canadian crude could also be a lever to make that happen. This is the first American president who wouldn't have a problem with doing so. I hope Canada doesn't get screwed here but we all know anything could happen. And I'm aware that currently U.S. refineries use heavy Canadian crude.