As Oil Prices Rise on End of Iran Waivers, Trump Aide Vows Oil Prices Won’t Rise

One would think hindsight would be 20:20 on the US ending Iran oil waivers on Monday and the surging price of oil in the first 48 hours since that happened. The Trump Administration remains upbeat, however, and confident that what clearly just happened won’t happen.

Trump economic adviser Larry Kudlow made comments Tuesday at the National Press Club, comments which again came two days after the announcement, and after two days of prices going up substantially, assuring that there would be no price increase.

“I don’t see any palpable impact. The world is awash with oil,” Kudlow told the audience. That clearly appears to have been the administration’s rationale, with several officials emphasizing the excess oil on the market before this move was ultimately made.

Their math was a bit off though. Estimates of tens of thousands of additional barrels of oil supply being available were slammed headlong into a US move that aimed to stop Iran’s roughly one million barrels of daily oil sales. This has already lead to a rush on the market, with nations trying to secure supply while they can, and at higher prices.

All of this was well predictable. Indeed, financial outlets had already predicted that the administration would have to keep the waivers program going specifically because they couldn’t afford this increase in global prices. Instead, they deluded themselves into thinking it wouldn’t happen, and when it did, continued to maintain that it didn’t, or wouldn’t.