Suncor Energy Inc. T.SU

Is MBS trying to drain the SPRs?

[Clemxb7]

I see the consensus is that the only way the Saudis would extend their July cuts is if they see softness in the oil markets ahead.

I can see an alternate view that also makes sense:

MBS craves power. OPEC predicts a roughly 2 million barrel a day deficit second half of 2023. Another consensus prediction is China will cap the rise in oil prices by selling from their SPR once prices hit ~$85 Brent.

What if MBS is tired of getting outfoxed by NATO when prices were supposed to spike with the Ukrainian war through instead dropped due to the US (and other) SPR's? 

Some guy on titter from the Gulf was on Twitter yesterday saying Saudis will continue the cuts for months yet.

Why? MBS wants to drain the SPR's and finally get control over the world oil price. That’s why the Saudis unilaterally cut.

[MigraineCall]

Partly right. The Saudis will set the floor in the oil price, and the Chinese will set the ceiling. China has amassed record amounts of crude, and has rapidly built even more additional crude storage. They have taken advantage of Biden's US SPR releases, and the low prices from Russia, Iran, and Venezuela. China crude including SPR: If the oil price gets higher, they would be insulated

[Experienced]

Very interesting chart my friend. The increase alone in the chart is about 200 days of imports by my calculations.  On the other hand, the US SPR is being emptied - Gotta love the idiots running the White House!! LOL.....you getting me real close to setting up another round trip on oils....LOL

[Experienced]

SRY typo...20 days not 200 days

[meritmat]

  Come to the dark side my friend!!

[Experienced]

ROFL....meritmat

[nukester]

"The force is strong on this one"

[Clemxb7]

As you point out there are actually a lot of bullish possibilities in the oil markets right now one of them being the extremes in bearish sentiment regarding oil As for Mohamed Bin Salman I'm no expert though he does strike me as the sort of dude who wants to control the whole f'n universe. It must frustrate him that the west forced Russian oil prices low and Biden opened the SPR just

[Experienced]

Clem...IMO you are not far off in your assessment of MBS and the Saudis in general. I won't go into the history of Saudi Arabia and in particular the rise of the House of Saud but those that are interested you will find a read of that history quite fascinating and revealing.  Your last statement is quite telling.  For the House of Saud, power is basically everything.  In