President Trump wants to increase drilling to reduce oil prices, but producers are hesitant. Sources told Wall Street Journal that US producers are not trying to support production.
President Donald Trump’s pledge to lower prices in pumps is tested by the United States and international energy producers.
The administration promises to eliminate the regulations of the oil and gas industry, which may not be enough incentive for producers to “train, baby, training.”
Trump mantra defined the president’s energy platform between him. Campaign praised the fact that the US Ballow Company has already pumped it. Historical amount of petroleum。 At this point, the boosting of excavation and the rapid increase in petroleum supply may be threatened. Profitability.
He told the Wall Street Journal that the White House advisor was aware of this and did not expect the US ball -rock industry to increase the product. Corporate leaders have suggested a lot in recent explanations of profits and warns not to expect a major excavation lamp up.
“We expect the industry to decrease as the crude prices decrease, and the profits will decrease,” said Daren Woods, CEO of Exonmobile. Trump wants to greatly expand excavation, but giants in the industry are more concerned about increasing the overproperation in the global market, and is squeezing prices around the world.
According to the Kansas City Federation Preparatory System, WTI oil prices are $ 84 per barrel for domestic companies to significantly promote excavation. This is about 15 % higher than the current price.
If Trump is dedicated to reducing energy prices, his adviser hopes that he needs external help. President’s best measure is the organization of the oil export country, a cartel of foreign oil producers led by Saudi Arabia. The president seems to be aware of this, and seems to be calling OPEC to lower the price in a speech to the World Economic Forum last month.
But the sources told the journal that Saudi officials signaled to Trump Team and that producers in the country did not want to support supply.
After all, OPEC members have reduced their production to increase market prices in the past two years. Many of these countries are dependent on the profit of oil and are hurt by market slides. The quota was set to expire in the past few months, but the cartel delayed the production revival three times.
At a review meeting on Monday, Opec+ COALITION confirmed plans to increase production in April and continued to keep the remaining part of this quarter. The cartel gradually rolls the production curb and brings 2.1 million barrels online by the latter half of 2026.
Former US officials who talked to the journal could have a price war between Trump and Saudi Arabia.