On November 22, 2018, US President Donald Trump publicly thanked Saudi Arabia for helping push oil prices down, even as pressure built in Washington for tougher action over the murder of dissident Saudi journalist Jamal Khashoggi.
Trump used a tweet to welcome the drop in crude and urged prices to fall further, arguing that cheaper oil would help the US and the wider global economy. He has repeatedly attacked high oil prices, criticized OPEC over output, and pressed Saudi Arabia, a major producer, to act.
“Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!” Trump wrote.
Oil markets had already been sliding for weeks. Prices rose on Wednesday, but the broader trend remained downward after Tuesday’s more than 6 percent drop, which sent US crude to its lowest level in more than a year amid a Wall Street selloff tied to fears of slowing global growth.
Brent crude had fallen from $86.74 a barrel in October to $61.71 on Tuesday, its weakest point since December 2017. US WTI crude futures also sank nearly 8 percent on Tuesday to $52.77 after touching a four-year high of $76.90 last month.
The Organization of the Petroleum Exporting Countries and its allies were due to meet in two weeks, with expectations that they would curb production to address rising supply. Reuters reported last week that OPEC and its partners, led by Russia, were discussing a 1.4 million barrels per day cut. Any reduction would reverse months of higher output that had pushed Saudi and Russian production to record highs.
Trump’s comments came a day after he said he would stand by Saudi Arabia, while also saying Crown Prince Mohammed bin Salman may have known about the plan to murder Khashoggi last month. The CIA believes Khashoggi’s death was ordered directly by the crown prince, Saudi Arabia’s de facto ruler, according to sources familiar with the matter.
US Defense Secretary Mattis said on Wednesday that Washington had to balance accountability and human rights with continued cooperation with Saudi Arabia, including efforts to end the war in Yemen. “On the Khashoggi affair, presidents don't often get the freedom to work with unblemished partners in all things,” Mattis told reporters.
Mattis also said he did not think the CIA or the Saudi government had fully established who was responsible for the killing. Trump, meanwhile, said he would not cancel military deals with the kingdom, calling that a “foolish” move that would only help Russia and China in the arms market.
Several US lawmakers, including some Republicans in Trump’s own party, pushed back and called for more congressional action. Secretary of State Mike Pompeo defended the administration’s position on Wednesday, saying the United States had already sanctioned 17 Saudis and that Riyadh remained important to the White House’s Iran strategy.
“Not every country shares our value set,” Pompeo told local radio station KQAM. “Our mission statement is to make sure that the American people are safe and secure.”
Nyakundi Report notes that the source article references 2017 in its oil-price comparison, with Brent crude described as having fallen to its lowest since December 2017.
