- Oil market analysts say Pres. Trump hoodwinked Saudi Arabia into raising crude production earlier this year, thus pushing the oil market into oversupply and sparking a ~25% drop in crude prices, but now the angry Saudis are considering cutting output with OPEC and its allies by 1.4M bbl/day.
- Saudi Arabia reportedly did not receive advance warning when Trump made a U-turn by offering generous waivers that are keeping more Iranian crude in the market instead of driving down Iran's exports to zero.
- "The Saudis feel they were completely snookered by Trump," a source tells Reuters. "They did everything to raise supplies assuming Washington would push for very harsh Iranian sanctions. And they didn’t get any heads up from the U.S. that Iran will get softer sanctions."
- "In early October there was this expectation that a lot of Iran's barrels were going to come off the market, and so essentially Saudi Arabia was duped into increasing production," says Matt Smith, head of commodities research at ClipperData.
- In a little more than a month, oil prices have fallen far below the $88/bbl that the International Monetary Fund says Saudi Arabia needs to balance its budget.
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, ERYY, ERGF, OILD, OILU, USAI, KSA
- Now read: BNO Is An Alternative To Position For A Spike To The Upside In Crude Oil On The Back Of Iran
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