Saudi Wants Oil at $70-80 to Please Trump

[Marina Schwarz + 1,576]

“The Saudis need oil at about $80 and they don’t want prices to go below $70. They want to manage the market like this,” one of the sources told Reuters.

“They need cash. They have plans and reforms and now the IPO is delayed. But they don’t want anyone else talking about oil prices now. It’s all because of Trump,” the source said."

Cute.

[Tom Kirkman + 8,860]

The Saudi's oil price dilemma is a tough place to be these days.  I can generally concur with their hoped for $70 to $80 price range - although I think it is a bit too high.  I am still hoping (probably spitting into the wind at this point) for $65 oil this year and $70 oil next year.

(Caveat, I'm hoping the oil price of $65 this year and $70 next year will be roughly the same actual value, taking into account the strengthening U.S. dollar.)

And a few months ago I already reluctantly conceded that oil prices will likely hit $80 before Autumn (and Autumn is just a couple weeks away from now - looks like my estimations were off a bit).

And the Saudi hopes of $70 to $80 are not dissimilar to my See Saw theory of oil prices bookended between $50 to $80 for the medium term (barring temporary black swan price spikes).

It seems neither Saudi Arabia nor Trump want oil prices higher than $80, so I'm guessing there might be ongoing negotiations with U.S., Saudia Arabia, Russia  ( ZOMG RUSSIA COLLUSION WE ARE ALL GONNA DIE ! !   ELEVENTY ! ! ! )  and other key oil producing countries to keep a lid on oil prices at a max of $80 or so for the near and medium term.

Despite the impending U.S. oil sanctions against Iran.

 

^ all of this is just my opinion; as always, you are free to disagree.