Oil was crashing on the street, after a Presidential tweet, and the sanctions on Iranian oil now will be gone. And the man who spurred it on sit, in judgement of all wrong, he decides and the Saudis sing a song that they’ve been wronged.
I will tip my hat to the green substitutions. Take a bow to the shale revolution. Smile and grin at the supply all around. Pick up the phone and say, cut back supply today. Then I’ll get on my knees and pray. We don’t get fooled again!
The Saudi’s are still simmering after being hoodwinked, bamboozled and snookered and fooled by President Donald Trump. It appears they feel they have been taken by the art of the deal maker and they want to get oil production cut revenge. While the Saudi’s want to send a message to President Trump with a massive oil production cut, the Russian’s are urging caution and perhaps a cooler head. Besides, after indictments in Saudi Arabia on the alleged killers in the brutal murder of Jamal Ahmad Khashoggi ,there will be a few more people in Saudi Arabia probably losing their head anyway. Russian President Vladimir Putin said that “We need to be very accurate here, each word matters, but the fact that the cooperation (with OPEC) is needed is obvious and we will cooperate.”
Yet, it is not just the Saudis that feel fooled by the President’s pledge that he would get Iranian oil exports down to zero, but some big hedge funds, that got caught in one of the most epic sell-offs in oil history, are not too happy with the President’s Iranian oil sanctions sleight of hand.
Reuters news reports that” Saudi Arabia did not receive an advance warning when Trump made a U-turn by offering generous waivers that are keeping more Iranian crude in the market instead of driving exports from Riyadh’s arch-rival down to zero, OPEC and industry sources say. Angered by the U.S. move that has raised worries about oversupply, Saudi Arabia is now considering cutting output with OPEC and its allies by about 1.4 million barrels per day (bpd) or 1.5 percent of global supply,” sources told Reuters this week. “The Saudis are very angry at Trump. They don’t trust him anymore and feel very strongly about a cut. They had no heads-up about the waivers,” said one senior source briefed on Saudi energy policies.
