Monday, April 20, 2020
What if Trump Blocks Oil Imports from Saudi Arabia?
American oil hit historical lows. Since the recent OPEC cut was not enough, or came late, now Trump will add 75 million barrels of oil to the Strategic Petroleum Reserve. Yet, another move would be to cut or block oil imports to America. Most probably, American oil could sell for slightly higher prices inside the American market. Since oil is so low, and there is no perspective of demand to grow soon, inside or outside their borders, if the situation remains unchanged for longer and without government intervention, one could expect some American oil producers to go bankrupt.
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