(April 20, 2018 at 11:25 am)Napoléon Wrote: https://www.reuters.com/article/us-usa-t...SKBN1HR1LP
Quote:"Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea. Oil prices are artificially Very High! No good and will not be accepted!” Trump wrote on Twitter.
...
Following Trump’s tweet, Brent futures were at $73.25 per barrel at 1300 GMT, down 53 cents from their last close. WTI futures were down 45 cents at $67.84 a barrel.
I ain't an oil prices expert, is this literally Trump making an impact or are these just routine fluctuations?
Markets react to things. This was the market reacting to Trump. If he says that oil prices are artificially very high, that means he's (a) sowing the seed of doubt about their actual value, and (b) hinting that he might want to do something legislatively about it. Both of those things are bad for investors in oil, hence the price goes down.
The same thing happened to steel stock prices when he announced that he might implement new tariffs, and then again when he actually did. The prices recovered I believe. Long term impact is what is key with stocks.
