WTI Down to $67.80 as Russia, Saudis Talk ... Change

[TraderTate + 186]

WTI down a lot, Brent still at over $76 as Russia, Saudis keep whispering about paring cut agreements. 

 

[Rodent + 1,424]

1 hour ago, TraderTate said:

WTI down a lot, Brent still at over $76 as Russia, Saudis keep whispering about paring cut agreements. 

 

I would say shouting from the rooftops, rather than whispering. I can't decide what the play is here. Ultimately KSA needs higher prices for its Aramco IPO. Either it has given up on that plan altogether and just won't admit it, or it really is fearful of US shale going great guns during an $80-oil era.  Seems like KSA is in a tough spot. It needs higher oil prices but can't afford them . 

[Tomasz + 1,608]

In my opinion they think oil prices were up too much and too fast because of speculators.

They want 80 $ per barrel for sure but not in second quarter of 2018 - rather in III/IV quarter and in full 2019 when this price environment  because of demand/supply balance will be more sustainable.

Edited May 25, 2018 by Tomasz