HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Trump Says He'd Use Tarif...

Mon Apr 6, 2020, 12:08 AM

Trump Says He'd Use Tariffs If Needed to Protect Oil Industry

Source: MSN

President Donald Trump ramped up his threats to impose oil import tariffs as renewed diplomatic tension between Saudi Arabia and Russia threatens efforts to reach a new deal to cut output.

Trump said Saturday at a White House press briefing he’d use tariffs if needed to protect the domestic oil industry, a day after meeting with U.S. industry leaders. A gathering of OPEC and other major producers scheduled for Monday was delayed until later in the week as Saudi Arabia and Russia traded barbs about who’s to blame for the collapse in crude prices.

Optimism over prospects for a deal sent benchmark oil futures to a record gain this week, despite an unprecedented global demand loss from the Covid-19 outbreak. A failure to come to an agreement would likely cause prices to crater again. The U.S. oil industry is split on the idea of tariffs, with some independent shale producers -- who’ve been hardest hit by the recent market slump -- in support, while refiners and large integrated companies are typically opposed.

The American Petroleum Institute, which helped arrange Friday’s meeting, argues tariffs would inject uncertainty into an already rattled global marketplace.

Read more: https://www.msn.com/en-us/money/markets/trump-says-he-d-use-tariffs-if-needed-to-protect-oil-industry/ar-BB12aQQk?li=BBnb7Kz



So, Russia and Saudi Arabia agree to cut production in a deal that was encouraged by Trump, which would raise oil prices, and Trump wants to make gas prices in the midst of a recession even higher by adding tariffs?

14 replies, 1120 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread

Response to TomCADem (Original post)

Mon Apr 6, 2020, 12:41 AM

1. We are looking @ what could be millions of dead Americans, between 130,000,000 and 240,000,000 ..

... cases of C-19 in America, a breakdown in society, and what could be another great depression
and Trump is worried about how the oil companies are doing?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 12:42 AM

2. Republicans sure like raising taxes don't they

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 02:03 AM

3. Tariff equals a tax on Americans.

Tariff equals a tax on Americans.

My Fox watching gf is so happy that 'China has paid all those tariffs.'

That's what she learns from Fox.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 02:55 AM

4. Oil on Friday will be 10 bucks a barrel...

So what if Russia and Opec decide on cuts, they will never get everyone to agree...so poooof goes that inflated price of oil....opec still makes money on $10 a barrel...

1.00 a gallon by June/July ...

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 03:39 AM

5. trump will only make things worse with oil pricing

He always does, so why would this be any different. trumps a complete failure.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 03:46 AM

6. If you look at any situation with a lense

of "what would do the most harm to American citizens over the long term", you will rarely miss-guess the course Trump will chose.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 04:08 AM

7. Most incumbents running for officer run on low gas prices

Most Americans fin it to be a feature.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 05:51 AM

8. ...and the price of oil is crashing

Oil futures are the current inside trading scam...allegedly...by Trump insiders. All Jared and Trump need to do is whisper in the ear of MBS and Putin and, bam! Oil market collapse.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 06:16 AM

9. When all you have is a hammer, everything looks like a nail

The only arrows in Trump's governance quiver are: stirring up shit, cutting taxes on the rich, and raising them on the working class through tariffs.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to jmowreader (Reply #9)

Mon Apr 6, 2020, 09:11 AM

13. I am not confident that he has a hammer, either... nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 06:32 AM

10. Oil Game Continues

This is only a weak attempt to try and keep the shale oil people from going total belly up and causing lots of banks, bond holders and stock holders to take a huge hair cut. What people don't seem to realize is that there's a lot of money tied up in oil development; oil price goes up, stock market goes up.

In the long term, oil is not sustainable. The working model is find a large oil deposit, estimate its size in recoverable oil, go to bank and stock market with oil estimate multiplied by the projected price (to estimate a value of the deposit), take out loan/float bonds/sell stock to raise capital, use capital to develop oil field, sell oil to pay back bond/loan holders and stock dividends and find or buy new oil deposits. This model only works if oil generally increases (because of general inflation and the increased cost in developing more marginal oil deposits).

We're seeing an accelerated breakdown in this model on the supply side since counties like Saudi Arabia and Russia depend so much on the oil revenue streams that any slight price drop makes them increase production to keep their incoming revenue the same; Saudi Arabia being in a luke warm war with Iran doesn't help either side's finances. The US oil industry is now in a serious bind because the price is now a fraction of their cost to produce. Thus the orange one's attempt to broker a deal (which will fail given his track record).

Long term, the advent of electric cars is going to doom big oil. No one know really knows when electric starts to replace the ICE but it's bound to happen in the next decade or so. This situation is analogous to coal's demise over the last 10 years. Right now big oil is doing their best to push the levers of government in their favor. We just need to remind the Hayek Libertarian arm of the Republican party that Trump's play is contrary to their laissez-faire principles (ha ha, I crack myself up).

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 07:59 AM

11. It's an interesting quandary

Russia and Saudi Arabia are selling goods (in this case oil) at below the cost of production in some cases and probably below a fair market value — in an attempt to damage a US industry that is, like it or not, of critical importance to US security.

Indeed, the one good thing to come out of fracking (aside from high paying jobs) is the ability to: (1) not get involved in wars in the ME and (2) the ability (albeit not so much the will, so far) to treat bad actors in the ME for what they are.

The classic economic response to dumping of a good to hurt a strategic industry is a tariff.

I wouldn’t mind raising gas prices, as that would discourage use and assist to prevent global warming.

But I doubt Trump has the will. He wants cheap oil to pay off people for support. It also helps his buddies the Saudis and Russia to not impose a tariff.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 09:09 AM

12. Trump isn't going to impose tariffs on oil,

He would never get to touch that glowing orbie again. I notice that Trump bad mouthed OPEC but never singled out SA or Russia.
Oil is a huge % of Saudi and Russia's economy, with that said, Russia and Saudi Arabia can survive with lower crude prices. The US shale oil cannot survive at prices below 40 dollars and 40 dollars is pushing it.

I can guarantee, since Trump met with the oil big wigs that he is going to give them bail out money even though the fossil fuel industry is already heavily subsidized by our government.

Trump might as well take over the oil and gas and airline industry with all the money we are giving them, oh wait, that's..never mind.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to TomCADem (Original post)

Mon Apr 6, 2020, 09:24 AM

14. Not sure what tariffs would accomplish when gas sales are at an all time low.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread