The decision itself might have been no great shock but what would have been welcome was a little more meat round the bone than just ‘The US will withdraw from the agreement’.
Soon Asia woke up and said Oh crikey! Where will we get our crude from? And the market rallied 1.70 and has been trading there, and is now rising again. Where they get their crude is of courese, the US.
Call us sceptics but we are starting to believe that Trump’s energy agenda has now hit a critical moment. Let’s face it, when Trump won the election in November 2016 the US was producing 8.7m bpd. In Apr 2018 the US was producing 10.6m bpd. That’s a 20pct increase in 18 months.
So, where is all this crude to go? Simple really, if you knock out one of the world’s biggest producers you immediately open a business opportunity where all this crude can go.
Trump is a business man and to be a business man you have to make harsh decisions. You can’t take away from the fact that the US economy is pretty good shape, as are US jobs and as is the US energy industry.
The market will keep a very close ear to the ground on the reaction from the EU this morning regarding the Iran nuclear deal. Covfefe anyone?