DAGEN: THE OIL MARKET IS A BIT
NERVOUS AS POTENTIAL FOR ALL-OUT
TRADE WAR BETWEEN UNITED STATES
AND CHINA ESCALATES WITH
CHECKING OIL PRICES RIGHT NOW,
THE COST OF CRUDE, LET'S TAKE A
LOOK, WHERE IS IT TRADING, DOWN
20 CENTS A BARREL, 72.74.
JOINING US NOW PHIL FLYNN.
WHAT DOES THIS TRADE BATTLE FINE
FOR OIL, WHERE DOES IT GO FROM
HAVE THE BIG TRADE WAR WOULD IT
SLOW DOWN ECONOMIC GROWTH AND
SLOW DOWN DEMAND, AND AS YOU CAN
SEE BY THE PRICE OF OIL, LITTLE
IMPACT.
THIS COMES EVEN AS CHINA HAS
THREATENED TO PUT 25% TARIFF ON
U.S.-CRUDE IMPORT WHICH AMOUNTS
TO ABOUT 400,000-BARRELS OF U.S.
CRUDE A DAY, ABOUT A BILLION
DOLLARS A MONTH, ALREADY CHINESE
REFINER ARE LOOKING FOR
ALTERNATIVES TO U.S. CRUDE.
AND LET'S FACE IT.
THE U.S. CRUDE INDUSTRY IN CHINA
DOWN A BIT BUT AT THE END TO
HAVE DAY, OIL COMMODITY AND WITH
THE GLOBAL ECONOMY CONSUMING
NEAR RECORD AMOUNTS OF CRUDE OIL
I DON'T THINK IT'LL SLOW THINGS
DOWN THAT MUCH.
>> PHIL, THIS IS KRISTINA
PARTSINEVELOS SPEAKING, I KNOW
YOU'RE SPEAKING POSITIVE RIGHT
NOW, THERE HAVE BEEN REPORTS
ABOUT SPARE CAPACITY AROUND THE
GLOBE THAT'S NOT GOING TO BE
ABLE TO FULFILL DEMAND?
>> YOU'RE ABSOLUTELY RIGHT.
THAT'S MY BIGGEST CONCERN ABOUT
THE ECONOMY.
THE TRADE WAR IS SECONDARY.
THE CAPACITY IN THE GLOBE IS
PROBABLY AT HISTORIC LOW.
THERE'S MAJOR DISRUPTION.
TODAY WE HAVE A TROPICAL STORM
IN ATLANTIC THAT'S DEVELOPED AND
IF WE LOSE PRODUCTION BECAUSE OF
NOT A LOT OF PLACES LEFT.
DAGEN: I HAVE BEEN PREDICTING, I
DON'T KNOW IF IT'LL HAPPEN, IT'S
ME THINKING OUT LOUD FRIGHTENING
ENOUGH.
>> THINKING GOD.
PRESIDENT COULD DO RELEASE SOME
OF THAT OIL TO BRING DOWN
PRICES.
>> ABSOLUTELY.
I THINK YOU'RE ABSOLUTELY RIGHT.
HE WILL DO IT.
THAT'S -- THAT'S OUR SPARE
CAPACITY RIGHT THERE.
AND PRESIDENT TRUMP HAS SHOWN
THAT HE'S WILLING TO SELL OIL
FROM THE RESERVE FOR BUDGET
REASONS.
OVER THE LAST COUPLE OF YEARS
AND PRESIDENT TRUMP WOULD USE
THAT IN THE CASE OF AN
EMERGENCY, BUT YOU DON'T WANT TO
RELY ON RESERVE.
YOU WANT TO GET BACK TO
INVESTMENT IN THE GLOBE, ENERGY,
OFFERING OF SAUDI ARABIA'S GIANT
STATE-OWNED OIL COMPANY ARAMCO
HAS REPORTED STALLED, THE WALL
STREET JOURNAL REPORTING THAT IT
WILL PROBABLY NEVER TAKE PLACE,
THIS WAS BUILT AS THE WORLD'S
LARGEST IPO, WHAT'S BEHIND THE
UNRAVELING, PHIL?
>> MOHAMED IS UNDER A LOT OF
PRESSURE AT HOME.
SOME OF THE ROYAL FAMILY WANTS
TO SEE HIM OUT OF THERE.
AT THE SAME TIME IT WAS JUST TOO
BIG, YOU KNOW, THE LONDON STOCK
EXCHANGE BASICALLY SAID IF WE
WERE GOING TO DO SAUDI IPO, WE
WOULD HAVE TO MAKE SPECIAL RULES
FOR IPO BECAUSE THEY DON'T FIT
THE TRADITIONAL DEFINITION OF A
NORMAL COMPANY THAT WOULD BE
THEY HAD TO SHOW.
PUBLIC COMPANY WOULD HAVE TO
DISCLOSE, SAUDI ARABIA DIDN'T
WANT TO, IT MADE IT ALMOST
IMPOSSIBLE TO MAKE THIS THING
GO.