Hans Parisis: Hike Gas Prices to Get an American's Attention

President Donald Trump has tweeted angrily about OPEC and oil prices.
“The OPEC Monopoly must remember that gas prices are up & they are doing little to help. If anything, they are driving prices higher as the United States defends many of their members for very little $’s. This must be a two way street. REDUCE PRICING NOW!” he wrote on Twitter.

The president appears unhappy with the level of oil prices considering them to be too high. The president’s authority in the oil market is such that oil prices rose marginally in European trading when markets were closed in the U.S. for the holiday.

A higher oil price transfers money from American oil consumers to oil producers. Now, as OPEC spends, by far, most of its income in Europe rather than in the United States, any money flowing from the U.S. to OPEC will tend to be spent in Europe.

However, and for investors that’s important, not that much money flows from the U.S. to OPEC into the U.S. fracking area.

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