The United States has made a formal statement that it will release some of its oil reserves in the wake of the massive fire that broke in Saudi Arabia’s largest oil reserve facilities recently.
This decision has brought down the surging prices of liquid gold. Stocks have also seen a downward slipping mechanism as investors are forced to remain on the sidelines ahead of this week’s Federal Reserve meeting.
Investors are looking undecided and no committed and one can blame it on the fact that the interest rate cut is expected from the Fed as well as next round of US-China trade discussions, which are just around the corner.
Speaking to the media, White House representatives have indicated that oil would be released if needed to keep the market well supplied. It is also confirmed that Trump has already informed the appropriate agencies to expedite the approval of oil pipelines still in the permitting process in Texas and other states.
Trump has also tweeted America’s intent to respond to the attack on Saudi Arabia, its close ally, through ‘ready and loaded’ military action. This is for the first time that the US President has indicated for a counteroffensive against what is being termed as a disastrous move made by Tehran.
The attack, while is being claimed by the Houthi militia, US is keen to believe that Iran was behind the drone attacks that has pushed Saudi Arabia’s oil production back by 50 percent.
Reiterating Trump’s thought, Secretary of State Mike Pompeo has accused Tehran of “ an unprecedented attack on the world’s energy supply”, an allegation that the Iranian foreign ministry has called “meaningless, pointless and not comprehensible.”