Is MBS trying to drain the SPRs?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.