Wednesday, 14 August 2019

#Saudi, Trump 'jawboning' suggests $75 top for oil market - Reuters

Saudi, Trump 'jawboning' suggests $75 top for oil market - Reuters:

Ask Saudi Arabia about its preferred oil price and the kingdom will say it has no target.

But a look at the pronouncements on the oil market by the world’s top oil exporter this year points to an oil price aspiration of around $70 per barrel LCOc1.

OPEC’s de facto leader probably would not mind oil prices rising to $75 per barrel and beyond.

But it has a problem. As soon as prices surge, U.S. President Donald Trump pops up, often on Twitter, to urge Saudi Arabia to lower prices.

OPEC has long understood the impact a few words said to reporters in a hotel lobby or over the phone can have on the price of oil, often called “jawboning” by analysts.

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