Analyst: Trump’s Oil Tweet Is “Noise In The Signal”

The president has repeatedly complained about what he sees as too-high oil prices.

A pump jack near Orla, Texas

Oil prices have been falling in recent days, bad news for the Texas energy economy, but apparently good news for President Trump.

Trump has complained about what he considers too-high oil prices before. (Pricier oil means pricier gas for drivers.) The president continued that on Twitter this week.

And then, prices dropped. So was it all Trump?

Not exactly.

“That’s going to be noise in the signal,” said analyst Matt Badiali with Banyan Hill. He said the president’s tweets do have an impact, but broader market trends like basic supply and demand still hold more sway.

“We're seeing the fundamentals drive the long-term trend, but sure, oil prices are going to move up and down in the short term to different drivers,” Badiali says. “And Donald Trump is just the most vocal U.S. president, so certainly he's going to have an influence.”

Last month, before the recent slide, prices hit four-year highs. Research firm DrillingInfo says that was probably the highest they'll get for the foreseeable future.

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