"There are a few reasons that Donald Trump now self-anointed acting President of Venezuela, as well as the United States might be so excited about appropriating Venezuela's oil. Trump may be counting on some boost from cheap oil to the US economy: he is obsessed with the price of gas. As the midterm elections approach, he has become concerned about unemployment. Deeply imprinted memories of scarcity during the oil crises of the 1970s may prime his belief that cheap oil cures it all."
"None of this makes any sense. The world is awash in oil, much of it fracked from shale in the US. Prices are at their lowest since 2021, when the global economy was recovering from the Covid pandemic. The US took out the president of Venezuela, sitting atop the world's largest oil reserves. Street protests raged across Iran, another large producer. The price of oil barely blipped."
Donald Trump appears motivated to appropriate Venezuelan oil by hopes of cheaper gasoline, electoral concerns about unemployment, and potential cash for government or personal use. Memories of 1970s oil scarcity and cultural myths about striking it rich seem to shape those hopes. Reality shows a global oil surplus driven by US shale production and low prices near 2021 lows. Removing Venezuela's president and unrest in other producers barely moved prices. Heavy Orinoco crude is uneconomical to develop at current prices; analysts say Brent needs about $80 per barrel, while recent prices have hovered around $58.7 to $62.3.
Read at www.theguardian.com
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