RE:RE:RE:Oil fundamentals is strong ….Politics has diverted the market away from fundamentals and the market appears to believe the drama over the numbers. Will the Saudis pull the trigger in spite of Biden's agenda and Russia's outlier agenda or will US 'diplomacy' force Saudi Arabia in to line.
IMO, the usual suspects are jawboning the oil price down because market players are not yet confident that the supply/demand equation will play out as anticipated. US debt ceiling, high dollar and fed rates need to resolve to give confidence in upward oil pricing and conflicting drain/refill narratives for SPR are upsetting confidence in oil (as intended).
Its all about the June 4 OPEC meet now. If the Saudis fold, goodbye to any market momentum for 2023. Saudi needs to call Biden's bluff or sacrifice all leverage to US jawboning the market with contradictory narratives to upset momentum.
The sitting Pres needs low gas prices going into an election year.