A Trump administration plan to help US oil companies raise prices could have a major impact on the world’s supply chain, which relies on imports.
The administration is pushing to boost oil exports, but critics have warned that such an action would undermine US economic interests and could lead to a drop in demand for oil in some of the world ‘s most heavily dependent countries.
The administration’s plan would allow American oil companies to raise prices by about 5% on the global market price and use the proceeds to buy more American oil.
The move could help the US export more than $300 billion of oil to its biggest market, Saudi Arabia.
In the short term, this could help boost the value of the oil exports to the United States, according to a Reuters analysis of data from Thomson Reuters.
But it could also have a far-reaching impact on global supply chains and the global economy, said David R. Meehan, a professor of environmental economics at Duke University.
“The United States is not going to have a shortage of oil and gas.
We are going to be able to export more oil.
It will help us in the short-term and we can export more,” Meehans said.
A 5% increase in prices is the equivalent of raising the global oil price by almost 6 cents per barrel.
It would mean that U.S. oil exports would be worth about $3.4 trillion in 2018.
But this could cause the price of oil in the United Kingdom, Canada and France to fall and that could further drive up global oil prices.
Under the administration’s proposal, oil producers would be allowed to raise their prices for two years in advance of the 2019 oil production cut, a move that would reduce the price for the world to about $75 per barrel, according, Meegan said.
That would mean the price would be about 25% higher in 2019 than it would have been in 2018, he said.
“That would be an enormous cost for the United State, which will suffer from higher prices in 2019, which means we will lose out on future production.
This would be a major blow to the economy,” Miehan said.
The White House said the administration would seek approval from Congress to raise oil prices by 5% in 2019.
The proposal was first reported by Bloomberg News.
The plan was announced by Energy Secretary Rick Perry and Agriculture Secretary Sonny Perdue.
It was not immediately clear when Congress would receive the proposal.