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The Wall Street Journal reports this in its new article, according to which Trump’s team has already realized that a significant increase in oil production in the US to reduce world prices is not advisable…
“There’s no new American oil boom coming anytime soon, no matter how many regulations are rolled back, oil executives say. After many producers went bankrupt during the peak of the shale boom, the industry is now focused on cutting costs and returning money to investors .”
As a result, Trump has decided to persuade Saudi Arabia and other OPEC countries to flood the market with more oil. However, Saudi Arabia has already said it has no intention of doing so.
Trump’s team aims to push oil prices down to $45 a barrel (currently $73, compared with more than $94 in 2022). But such a drop could be “catastrophic” for U.S. shale producers and Saudi Arabia, “Trump’s two most powerful allies in the global oil market,” The Wall Street Journal notes.
The publication also recalls that dozens of shale drillers went bankrupt in 2020 as prices collapsed due to COVID, and Saudi Arabia will struggle to balance its budget at current price levels.
