In this report I cover the early market action from London on Thursday, July 5th, 2018. I look briefly at the precious metals, the stock market, the dollar, the bond market and the oil price.
I also look at a tweet from President Trump on the 4th of July, 2018 in which President Trump demands that Saudi Arabia and other OPEC countries increase oil production. He also argues that the U.S. spend a lot of money to defend OPEC countries.
My take on this tweet is that President Trump could be looking at a way to dismantle the Petrodollar deal engineered in the mid 1970s by then Secretary of State Henry Kissinger. In that deal the Saudis agreed to only sell their oil in dollars while the U.S. would help in the Kingdom's defence. This deal helped create demand for dollars throughout the world as Saudi Arabia has been the major oil producer in the last fifty years.
My conclusion is that Saudi Arabia, the top dog of OPEC, will deal with other major powers like Russia and China and that President trump could actually be purposefully or unintentionally trying to renege on Henry Kissinger's deal with the Saudis.
Trump Tweet:https://www.zerohedge.com/news/2018-07-04/how-much-us-households-lose-gas-prices-rise
Videos on Petrodollar:
▶️ DTube
▶️ IPFS