It will be very interesting to see what Trump and Tillerson decide to do to the oil market. Trump wants the US to pump more oil and be independent from the middle east. That would require massive amounts of new drilling from the US and Canada. Which requires a high price of oil. Tillerson has a large stake in arctic drilling, which requires the US to remove its sanction on Russia, and a higher price of oil. The sanctions will be lifted from Russia. With all of the Putin cronies surrounding Trump, that will happen almost immediately. The trick is then raising the price of oil to hold steadily over $70 a barrel. That will be harder. OPEC introduced their production cut, but it is too little and all of the countries involved will cheat and over produce. So while the price will slowly creep up, it could take years before the price gets to where those two men want it. The fastest way to reach their goals is to suddenly take a few million barrels per day off the market. And the easiest way to do that is the re sanction Iran. Trump has been laying the ground work for months now. And we now live in the Trump world where the right thing to do and the best thing for Trump to do are far apart. Screwing over Iran means nothing to Trump or his supporters. They are all dangerous terrorists. And of all the fights that the Democrats will need to make in the next few years, Iran is not worth the effort. And its an action that will win kudos at home. The surge in oil prices will be an immediate help to the US oil industry. And as much as they have plans in the country Russia will not stop the US. They benefit from high oil prices by just as much. So now we all wait for January 20th when Trump is officially sworn it and the anti Iran rhetoric starts.
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