Saudi Arabia targeted the US oil market by increasing production and flooding US markets with cheap oil. The mainstream financial media was in denial that the Saudis would target the US energy sector.
In the early days of Saudi Arabia’s attack back in July of 2014, CNBC had numerous energy traders on that scoffed at the idea that Saudi Arabia was targeting the US shale industry.
Most people are still in denial about what Saudi Arabia did to this present day.
I recently had a discussion with a trader about how Obama and Democrats failed to protect US industry. The trader said, “You can’t lay all evils at the footsteps of the White House.” Really? Title 50 of the U.S. Code § 1541 gives the US President the power to declare war in the event of “a national emergency created by an attack upon the United States, its territories or possessions, or its armed forces.” I’m not suggesting that a proper response would have been to drop bombs on Saudi Arabia for their economic warfare against the US, but clearly, it is the President’s and Congresses job to protect our “possessions” and jobs.
Saudi Arabia Market Share
Saudi Arabia put thousands of US citizens out of work across the energy sector by dumping millions of barrels of cheap oil into our markets. Saudi Arabia raised the price of oil in other countries to offset some of their US losses.
According to new IEA data, Saudi Arabia now controls 34% of the entire oil market. FT writes…
Middle Eastern producers now make up 34 percent of global output, pumping 31m barrels a day, according to IEA data. This is the highest proportion since 1975 when it hit 36 percent.
Now that oil is up +55% over the last five months imagine how much money Saudi Arabia is now making with 34% market share.
Saudi Arabia’s destruction of our oil shale industry was a success. Congratulations to Saudi Arabia for a well-played move against our dysfunctional bureaucracy. Let’s hope our next President and Congress are smarter than the current bunch in power.
Below is a brief history of our relationship with Saudi Arabia that traders should take a moment to review.
[graphiq id=”6YjIu3oYFA9″ title=”United States-Saudi Arabia Relations: A Brief History from Recognition to Post-9/11″ width=”440″ height=”744″ url=”https://w.graphiq.com/w/6YjIu3oYFA9″ link=”https://www.graphiq.com/wlp/6YjIu3oYFA9″ link_text=”United States-Saudi Arabia Relations: A Brief History from Recognition to Post-9/11 | Graphiq” ]