As we know that The US President, Donald Trump was giving such kind of punishment for Iran for stopping their oil export. Seemed not enough, Trump also forbids other countries which became Iran's oil consumer for not importing the oil from Iran anymore. It actually increased the world oil prices to its higher level. Iran is the number one oil exporter in the world. Many countries really depend on it such as South Korea, India, and many more. In the last week, the oil prices increased by 22.6% to be USD 65,70 per barrel from USD1,70. But today, oil prices are surprisingly come back to its lower level. And, why did it happen?
What Happen To The World Oil Prices
After experiencing the rise of oil prices in the last few weeks because of the US punishment towards Iran, today it decreases to the lower price. The decrease in the oil prices was monitored since Monday. US President, Donald Trump, was giving pressure towards The Organization of Petroleum Exporting Countries (OPEC). Trump asked the members of OPEC to decrease the oil price before it exported to other countries. Trump said that OPEC should increase their production of the oil to fulfil the oil needs of other countries around the world. Or on another hand, it was to take over Iran for exporting the oil.
Logically, OPEC has a new important job which is to replace Iran's job to provide the oil stock for the consumers. It means that OPEC should increase production, and the demand for the oil will definitely increase. As the economic theory, when the demand increase, then the price should be decreased.
Then When Could it Start?
Trump started his strategy in order to keep the oil trading situation stay balanced and stable. He wanted that every country as the oil consumers still can get what they need but doesn't need to get it from Iran which actually in US sanction because of the nuclear issue years ago. It was started since the US decided to tighten their sanction to wards Iran and ended up all the exception that belonged to the main consumer in Asia. So, it means that Asia consumers couldn't access the oil from Iran anymore. In another side, there are many countries depend on Iran to fulfil their oil supply.
That's why, to handle this problem, Trump tried to replace Iran main job which is to supply the oil to all countries around the world, with OPEC. So that every consumer, either from Asia or another continent, they will get oil supply from OPEC but with a lower price, or we could say normal price as a gasoline price.
How Much The Oil Prices Nowadays?
The decrease in oil prices in the world is quite significant. The Brent Crude oil was in USD 71, 72 per Barrel. It was decreased as much as 43 sen or 0.6% since their last closing. It's good for the consumer. Meanwhile, another crude oil like West Texas Intermediate (WTI) US decreased up to 38 sen. The West Texas Intermediate Crude Oil definitely decreased up to 0.6% than the price before to be USD 62, 92 per Barrel since the last closing. When the oil prices got down, it will be more beneficial for the consumers in the world. It seems like there's no problem if Iran no longer becomes the oil exporter.
Many countries as the oil consumer are already got another supplier for their oil needs from OPEC itself. And it's quite fair that they still can get the crude oil with a normal or lower price than before. In that case, Russia is willing enough to increase its oil production for the consumer in the world.