Deciphering Trump’s plot against oil market

By Hossein Abbasi-nasab

Although the US currently imports about 2.5 million barrels of crude oil per day, it announces a new record in shale oil production every week. In case the trend of expanding oil extraction capacities in the US continues this way, in less than two years, the country’s level of technology and unconventional oil production will improve to the extent that it will no longer need to import crude oil. This increase in oil production will also generate sufficient capital for developing modern and less costly techniques for shale oil production.

Following this period, the US, as the world’s biggest oil producer, would gain absolute dominance over global crude market and, perhaps, would no longer need Riyadh. In such a situation major oil importers such as China, India and the European Union will have to, economically and politically, acquiesce to all US orders and demands to be able to meet their requirements.