Trump's Mixed Oil Message Won't Fix Supply Fears, Traders Say - Bloomberg:
U.S. President Donald Trump’s weekend of oil diplomacy doesn’t change the underlying dynamic of a crude market that’s swiftly seeing demand threaten to overtake supplies, analysts said on Sunday. Trump’s tweet suggesting that Saudi Arabia had agreed to pump an additional 2 million barrels a day may drive crude prices down initially when trading resumes at 6 p.m. New York time on Sunday, said Phil Flynn, a senior market analyst at Price Futures Group Inc. in Chicago. Yet a price boost could be short-lived, Flynn said. The White House and the Saudi Press Agency each released statements after Trump’s tweet saying the sides had discussed how to compensate for potential shortages in oil producing countries, but neither referred to a specific target. Meanwhile, rising demand and supply disruptions still support higher prices, Flynn said.
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