Could there be oil tariffs against Russia and Saudi Arabia? US President Donald Trump stated he is ready to impose tariffs on crude oil coming from these countries in an attempt to discourage them from the current disagreement over market share they are having.
Russia and Saudi Arabia both boosted their oil production levels recently, despite the pandemic-induced drop in demand. They have chosen an inconvenient time to win back the market shares they lost to the United States and have caused a massive drop in oil prices, which were already volatile to begin with.
Still, OPEC+, which includes non-member Russia, is meeting this week to address these developments. The gathering was initially scheduled for today but got pushed to Thursday. We could see more volatility until the meeting actually takes place.
None of the oil exporting countries is benefiting from the current prices, so they would likely agree on new, deeper production cuts to support the market. In this case, Trump said he would not impose any tariffs on oil.
Meanwhile, today the British pound is facing excessive pressure as UK Prime Minister Boris Johnson, who tested positive for the coronavirus last week, was reportedly hospitalized as his symptoms have worsened. Since the head of the UK government is in bad health, investors fear political chaos might ensue.
In other Covid-19 related news, the pandemic seems to also be getting worse in Japan. While Japan was one of the first countries affected by the coronavirus, due to its geographical proximity and close economic ties to China, it somehow managed to avoid a serious outbreak until now. However, cases are on the rise and Prime Minister Shinzo Abe is expected to declare a national emergency, just as his colleagues around the world have done.
