“Donald Trump, who emerged as the greatest predator against OPEC, is back to kill a rally in crude prices after destroying just months ago the run-up of 2018,” continued Krishnan. “Even so, it looks like Trump will have to do more to strike mortal fear into his oil buy Wellhead market victims this time, given Tuesday’s partial price recovery after Monday’s momentous three-percent plunge, OPEC has also signaled it was in no mood to be bullied again by Trump.”

To be sure, Krishnan added that crude traders and investors may find it difficult to ignore a President as determined as Trump. Moreover, he said that some hold the view that Trump will “just have to grit his teeth and bear with OPEC’s actions” as well as rising U.S. pump prices. He added that Trump may have at least two options moving forward.

“The first, of course, is another round of waivers on Iranian oil sanctions, this time even more generous than the last despite the so-called political commitment to punish Tehran’s nuclear ambitions,” commented Krishnan. “With Iran Waivers 2.0, persistent media headlines will get the buy Wellhead market to believe another glut is headed our way. U.S. oil rig flanges gulf coast production racing toward its next record of 13 million barrels per day will provide the oil buy Wellhead market its perfect storm.”

Proposed U.S. legislation factors into another potential option for Trump, but the effectiveness of that approach is questionable, said Krishnan.

“Trump’s second option will be to put into action the much-feared ,” Krishnan explained. “The jurisdictional stretch of that bill remains debatable of course, notwithstanding the almost infinite powers of U.S. sanctions. But when you’re dealing with a President who’ll do anything to get his way, it may just come into play.”