Oil just fell below $50, and it's bad for US, Mr Trump

Be careful what you wish for, lest it comes true. or so goes the adage. Well, in the case of US President Donald Trump, his wish for steeply lower oil prices just came true. And it doesn't look good for the US. "Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let's go lower!" tweeted @realDonaldTrump on November 21.
The US WTI oil futures slipped to $49.48 per barrel yesterday, marking a decline of over 8 per cent in less than a month. They've gone lower, Mr Trump. Happy? You can't be! Not when the US is the world's largest crude oil producer and is likely to remain so in 2019 (as per EIA data).
Never mind the fact that global oil prices are falling on the back of potentially weaker global economic growth, a sub-$50/b oil price can only hurt the world's top oil producer, in particular, the hundreds of American shale oil producers who will find it unprofitable to keep producing oil at those levels.
Indeed, petrol prices at the pump will fall and consumers will shell out less to top up their cars (here in the UAE, too). But oil has been a key driver of the recent GDP growth witnessed by the US, and Opec production cuts seem to be doing little to assuage the fear of an oil glut, fuelled as it is by the race between US and Russia to gain market share. The US economy now stands to suffer as much (if not more) as major Opec economies, and Trump can't wish the low oil prices away even if he wants to.