Not a fool, Trump hints at $ 9 oil price for April, is it the accidental plug for bitcoin?
After inadvertently announcing about Bitcoin (BTC) last week, United States President Donald Trump has hinted that he expects oil to plummet to just $ 9.
At a press conference on March 31, Trump reiterated what has become an inclination for lower oil prices.
Trump: $ 9 could “give you what you wanted”
He was speaking in the midst of talks with Russia and Saudi Arabia, which plan to increase oil production this month despite the drop in demand caused by the coronavirus. WTI crude prices have lost more than 50% in the last 30 days alone.
“Look, it costs $ 22, but it’s really much cheaper than that if you want to negotiate, nobody has seen it,” Trump told reporters.
“That’s like in the 1950s, it really is, to think it was $ 50, $ 60, $ 70, $ 80, and now it’s $ 22, but you know, if you make a good deal at $ 9, I think You could probably get what you wanted, right?
The last time oil hit $ 10 was in 1998, when Saudi Arabia also flooded the market to prevent an advance from Venezuela. That is to say that the price war has a political objective, in the current case Saudi Arabia wants to ruin Russia, in this price war it is very likely that the oil extraction companies by Fracking from the US, and other countries will have considerable losses and they are unrecoverable, it is a very serious economic problem.
As Cointelegraph reported, Bitcoin has limited its year-to-date losses to around 10%, while WTI oil has lost nearly 70%, according to data from the monitoring resource Skew.
Oil producers go bankrupt
Trump’s comments were particularly poignant on the back of the turmoil facing both the U.S. dollar and its issuer, the Federal Reserve.
After the Fed said it had “unlimited” money, Trump claimed that the state could manipulate infinitely, describing it as “our money” and “our currency.”
This, in turn, sent chills down the spine of Bitcoin supporters, as in the absence of such meddling in the money supply it is a key benefit over fiat that makes cryptocurrency a “hard” form of money. .
The expected production increase in April is especially noticeable for Russia’s fiat currency, the ruble, and those who use it. Closely tied to oil prices, the ruble has plummeted to its lowest level against the dollar in four years.
Paradoxically, Russia currently spends money propping up the ruble exchange rate while producing oil for a saturated market.
All of the above shows a panorama to take into account, the saturation of the oil market with greater quantities, in the midst of a recession causes prices to drop even more, the countries that extract oil do so at a loss, it is said that extracting oil costs 30 $ per barrel, in production cost, with prices below their economies collapse, we will soon see a great recession, together with the one that produces the Coronavirus pandemic, the problem worsens. Blockchain-bitcoin technology can be an aid in generating stability and as a safe haven. New announcements awaited.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.