Trump Cut Oil Prices Shock

Trump Cut Oil Prices Shock. Oil prices closed higher at the end of Thursday, but slid back into trading session this Friday (7 / July). Concerns about an increase in oil surplus from high US output that faded after the release of Crude Oil Inventory data by the Energy Information Administration (EIA), again surfaced following a new announcement from the administration of president Donald Trump.
US Oil Stocks Decline More Than Expectations
The Energy Information Administration (EIA) reported late on Thursday that crude oil stocks in the United States were down nearly 6.3 million barrels in the week ended June 30. That figure is bigger than the 2.3 million barrel projected by analysts.

Meanwhile, Gasoline's inventories, one of the leading refined petroleum products, also unexpectedly decreased by 3.7 million barrels; Although previously expected to rise 1.067 million barrels. The stock of other distillates also showed a large decline, exactly as much as 1.85 million barrels.

Despite the brilliant figures, oil investor sentiment remains uncertain. US crude oil inventories are still above the seasonal average, while output-restricting agreements declared by OPEC, Russia and friends are overshadowed by doubts.

Trump Accelerates Processing of Oil and Gas Exploration Permits
Last weekend, oil prices rallied after Baker Hughes reported a decline in the amount of oil drilling rigs in the United States. However, the announcement of the US government this morning seemed to dismiss an indication of the decline in oil production rate.

US Interior Minister Ryan Zinke signed a warrant for auctioning more locations and accelerating the granting of oil and gas exploration permits on federal lands. The procedure was previously complicated in President Barack Obama's era because of the direction of a more environmentally friendly policy. However, President Donald Trump has long argued that it would make it easier for mining on federal lands, in particular to boost state revenues.

As of January 31, there were 2,802 pending permit applications. Most are in the Wyoming, Utah, North Dakota and New Mexico regions.

Zinke did not say how long it would take to speed up the processing of all the permits, only that "It will not be completed overnight, we do not want any unaccounted consequences."

As of this writing, Brent oil prices are in the range of $ 47.58 per barrel, the lowest since June 24. Similarly West Texas Intermediate (WTI), slumped at $ 45.06 per barrel, although on Thursday it touched the range of $ 46.