I already noted that The Donald has this tendency to exaggerate, let's call it that, somewhat few days ago when he claimed that he "brokered the deal" between Saudis and Russia on oil. Sure he did, and I know where the body of Jimmy Hoffa is buried. Reality has this bitchy tendency to correct people who deny it. So, it did.
(Bloomberg) -- President Donald Trump ramped up threats to use tariffs to protect the U.S. energy industry from a historic glut of oil, as efforts to forge a global deal to cut output appeared to lose momentum. Trump said Saturday at a White House press briefing he’d use tariffs if needed to protect the domestic oil industry, even as he predicted that Saudi Arabia and Russia would come to an agreement to cut output and stem the rout in prices. But such a deal looked a bit further from reach at the weekend after a diplomatic row between Saudi Arabia and Russia. A gathering of OPEC+ members and other producers scheduled for Monday was pushed back, to give more time for negotiations.
But, wait a minute, just two days ago he said that everything was ready to go. Hm. Of course it was not, because Russia is not going to negotiate anything until the United States joins in--the step Trump tries to avoid, evidently, by all means. I am not a specialist in oil industry, far from it, but here is what Trump and US oil industry are facing, and I quote:
Hundreds of thousands of U.S. oil industry jobs are hanging in the balance, with about $15 billion of investments wiped out from the budgets of shale explorers and many of them on the brink of bankruptcy.
The condition to Trump was articulated, in fact, spelled in the most clear and easily understood way: Russia is going to negotiate ONLY on the condition of the United States joining those negotiations and showing readiness to cut own production.It is either that or the United States cuts production in the most uncontrolled manner down the road due to obvious economic depression unfolding in a front of our very own eyes. When writing about Noblesse Oblige five days ago I assumed that the United States will behave itself as a true superpower--I was wrong. Nor the issue of North American refineries which are very specifically "tuned" for different types of crude is properly discussed. If that wasn't bad enough, "good" news continue to pour in for Boeing's B-737 Max, with Boeing losing a contract for another 75 B-737 Max. Ain't the globalism grand?
UPDATE: same day.
UPDATE: same day.
(Reuters) - Boeing Co <BA.N> said on Sunday it would extend the suspension of production operations at its Washington state facilities until further notice amid the coronavirus outbreak. The largest U.S. planemaker said on March 23 it would halt production at its Washington state twin-aisle jetliner factory as a temporary measure to help fight the outbreak of the respiratory disease. Production had been expected to resume early this week. Boeing declined to say when production could resume. It said the actions were "being taken in light of the company's continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state, the reliability of the supply chain and additional recommendations from government health authorities."One word: WOW!