Trump holds two sharp swords in Saudi Arabia's head: Prohibition of crude oil import and abolition of the climate agreement
trump holds two sharp swords in Saudi Arabia's head: Prohibition of crude oil import and abolition of the climate agreement
November 16, 2016
[China paint information]
zerohedge, a well-known financial blog, said on Tuesday (November 15) that the past week could be described as a nightmare for Saudi Arabia. Saudi Arabia has directly or indirectly invested 20% of the campaign funds for Hillary Clinton, but at present, all this is not just empty. Trump's election will even further impact Saudi Arabia's already fragile financial situation
according to the financial times, Saudi Arabia warned that if trump banned crude oil imports as promised during the election campaign, the country's economic prospects would be severely impacted
trump said during the election campaign that he hoped to establish "American energy independence". Saudi Arabia's energy minister said that the United States' benefits from "global free trade are far greater than those of other countries using weights (counterweights) with known weights in advance to adjust, which is called" f calibration "he country." energy is the blood pillar of the global economy "
Trump's trade protectionism has always been the focus of global attention. All parties are worried that once such policies are implemented, the process of globalization and the economies of exporting countries will face severe challenges
Saudi Arabia's energy minister Falih said, "I believe trump understands the benefits of free trade from the bottom of his heart. I think the crude oil industry will also raise the risk that China Zhongwang's 2016 first quarter financial report will cause him to ban imports."
Falih added that although the United States imports millions of crude oil every day, it also enjoys the benefits of exporting a large number of refined oil products. The free trade agreement is the basis for the innovation of shale oil production in the United States, which can "create a lot of jobs and economic value" for the United States
in response to trump's patriotism, Saudi Arabia pointed out that "the United States is actually the flag of capitalism and free market"
trump has promised to revitalize the U.S. crude oil industry, which means that shale oil production may rebound, further aggravating the oversupply situation in the global market, which can be said to be a nightmare for Saudi Arabia, whose deficit is expanding
Falih said: "the United States will continue to be an important part of the global crude oil industry, so free trade is crucial for the crude oil industry." Saudi Arabia will continue to pay attention to trump's future governance direction
on the other hand, Trump's attempt to repeal Obama's climate agreement also poses a threat to Saudi Arabia's crude oil industry. Because this climate agreement limits the production capacity of a large number of U.S. crude oil enterprises, once it is abolished, U.S. shale oil production is likely to rise sharply, which will threaten Saudi Arabia's export share
however, Falih said that the climate agreement is actually a good thing for the United States, because the U.S. crude oil companies have stronger technical capabilities and can meet the emission needs of the climate agreement at a lower cost after the end of the 4.7 experiment, while relatively poor countries need to bear greater losses. To some extent, market analysts believe that this is accusing the United States of being cheap and being obedient
French President Hollande said on Tuesday that trump should continue to implement the Paris gas splint downward movement waiting agreement after taking office. He said: "as the world's most powerful economy, the United States is also the world's second largest emitter of greenhouse gases, and should pay for its commitments. In fact, this is not only what they should bear, but also their interests."
since trump won, there have been different opinions on the direction of his administration. Let's wait and see whether trump will violate his campaign commitments, or whether he will implement trade protection and abolish the climate agreement. Saudi Arabia's economic prospects are about to be severely tested