RE:Message from bin Salman OPEC is fighting a battle on two fronts.
On one hand they have the paper market speculators and US goverment trying to manipulate the price lower. On the other there's North American E&Ps ramping up production along with OPEC nations to capitalize on the high price of oil. It's a toss up who they're going to smack later this month.
OPEC cuts production... raises the price and helps domestic producers - they produce more.
OPEC Increases production... drops the price and hurts domestic producers - they produce less.
Outsiede of a black swan event... my guess is that if the global economy is slowing and WTI does not drop below $70, then Saudis will hold firm on the 26th with no further cut or extension. Essentially tap the brakes and send a gentle message to North American producers to ease up.
Marty47 wrote: Of demand, bin Salman said definitively, “It’s not weak. People are pretending it’s weak. It’s all a ploy.”
The Saudi Energy Minister has lashed out repeatedly at traders and oil speculators, warning them earlier this year that anyone betting against crude oil would be “ouching like hell”. It is just one of many warnings.
The recent price drop has been blamed by some on weak crude oil demand. But according to bin Salman, some in the oil market have been misreading the cues with increased oil exports from OPEC member countries in recent months, and how it relates to their production.