Sunday 6 January 2019

#Saudi Oil Production Cuts May Stoke Oil Prices, Spur Trump Tweets - Bloomberg

Saudi Oil Production Cuts May Stoke Oil Prices, Spur Trump Tweets - Bloomberg: The list of things that President Donald Trump criticizes in his tweets varies from one day to the next. He may soon have to direct his ire to oil prices and the actions of his ally, Saudi Arabia, once again. 

The desert kingdom is already making good on its promise to slash supply, and the initial evidence suggests that the biggest cut is being made in deliveries to the U.S. On top of that, the price it charges American buyers of its crude has been raised to near record levels for cargoes to be shipped in February. That could be bad news for a president who just celebrated falling gas prices.

The OPEC+ group of countries met in December and, after Russia took the reins, eventually agreed to cut supplies by 1.2 million barrels a day from January. For Saudi Arabia, that meant cutting production to just over 10.3 million, but it pledged to go further — oil minister Khalid Al-Falih told reporters and analysts that it would be slashed to 10.2 million barrels a day in January.

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