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“Artificially depressing” oil prices would affect not just Russia but all oil-producing nations in the world, including the US, due to how “interconnected” the global oil market is, political analyst Faisal Alshammeri tells Sputnik.
The US oil industry “thrives on a delicate balance of prices” and a sharp decline in the value of a barrel could “undermine domestic producers, leading to layoffs and reduced investments — outcomes that counteract any short-term gains.”
Forcing oil prices down might indeed “spur consumer spending, lower inflationary pressures, and enhance industrial competitiveness” in the US, but it also carries “substantial risk” for the American economy.
Thus, Trump’s apparent belief that “leveraging lower oil prices could economically pressure Russia into reconsidering its foreign policy” has a major flaw.
