President Trump’s push for increased oil production is meeting resistance from both U.S. shale producers and Saudi Arabia. While Trump has encouraged domestic frackers to ramp up drilling, industry executives and his own advisers acknowledge that another shale boom isn’t likely in the near term. Cost control and returning cash to investors have taken precedence over-aggressive expansion. Saudi Arabia has signaled reluctance to augment global supply, citing budgetary pressures and a cautious stance toward repeating past oversupply issues. Trump is set to visit the kingdom to persuade higher production. He views additional oil as a means to curb inflation, enable interest-rate cuts, and strengthen his position against rival petrostates Russia and Iran.
Category
🗞
NewsTranscript
00:00It's Benzinga bringing Wall Street to Main Street.
00:02Trump's push for increased oil production is meeting resistance for both U.S. shale producers
00:07and Saudi Arabia. While Trump has encouraged domestic frackers to ramp up drilling,
00:12industry executives and his own advisers acknowledge that another shale boom isn't
00:16likely in the near term. Cost control and returning cash to investors have taken precedence
00:22over aggressive expansion. Saudi Arabia has signaled reluctance to augment global supply,
00:28citing budgetary pressures and a cautious stance towards repeating past oversupply issues.
00:34Trump is set to visit the kingdom in an effort to persuade higher production.
00:38The views of additional oil as a means to curb inflation enable interest rate cuts
00:43and strengthen his position against rival petro-states Russia and Iran.