Normally I would not write about such political / pop culture absurdities as The Donald, but in this case, I believe the situation warrants comment, especially with every trader and his brother getting ready to get long oil.
“Trump has a surprising response to speculation that the turmoil in Egypt and other countries in the Middle East could push oil prices to as high as $200 a barrel.
“It also could go the other way. Frankly, the Middle East is a tinderbox. It’s going to explode. OPEC will probably be destroyed if it explodes, and oil prices could go the other way.
“I understand economics. You break up what would normally be an illegal monopoly, OPEC, and break it up very strongly. The Middle East is exploding, and I’m saying that could have a positive impact on oil prices.
“If you look at oil right now, it’s soon going to be $100 a barrel. Far too high. It’s set by OPEC. I think OPEC would explode with the Middle East and that wouldn’t be the worst thing in the world.”
Trump has especially harsh words for OPEC and its grip on oil prices.
“I think it’s unfair. I think it’s illegal,” he declares. “If you have a store and I have a store and we collude and set prices, we go to jail.
“Here you have 12 men, in this case all men, they sit around a table and they set the price of oil.
“We have so much oil. There’s so much oil out at sea. I see $3.50 for a gallon of gas. Cars are lined up trying to get it, and at $3.50. It’s a shame. It’s a ridiculous shame.
“Plus we don’t use our natural gas. We have more natural gas than anybody. Why we not using it is an amazing thing.
“Abu Dhabi, which has plenty of oil, just went to all natural gas for transportation because they want to sell us the oil at exorbitant prices. When you tell me about Obama and what he’s doing in the Middle East, I don’t think he’s doing anything in the Middle East.”
Trump warns of the dangers to the United States posed by OPEC and high oil prices.
“We have to do something about OPEC because that’s the life blood of the country. Right now, until we get on natural gas and other things, they really have us, and they’re sitting around inflating the price.
“When we had our problem not so long ago, a few years ago, oil was almost $150 a barrel. They’re blaming the banks, and the banks were terrible, and lots of other things were terrible, but I give a lot of the credit for the almost collapse of this country to the price of oil. It’s going to be up there again very soon and you’re going to have another catastrophic problem.
“By the way, any time a country comes up with oil they invite them in. Join OPEC. The United States is stupid, the people who represent the United States are really stupid, so join us and we’ll take advantage of the United States, sell them oil at inflated prices. They’re draining our life blood. We cannot allow that to continue. What kind of power do we have over OPEC? They wouldn’t even exist if it weren’t for us.”
Asked where he thinks the price of oil is headed, Trump responds: “I think it could go, with proper leadership, down to $40 a barrel. I think if we continue the way it is, it’s going to go up to $150 a barrel.”