Saudi Arabia to Defy Trump with Oil Cut Agreement

Saudi Arabia will likely move to cut its oil output in order to prop up crude prices, against Donald Trump’s demands to keep pumping so that prices stay low.

Analysts believe that despite Washington’s geopolitical leverage over the kingdom, after its staunch defense of the Saudi monarchy amid accusations over its alleged role in the murder of Saudi journalist Jamal Khashoggi, Riyadh will still pursue its own economic interests rather than abide by the wishes of President Trump.

The pivotal question hanging over oil markets remains that of production cutbacks. Who will tighten their taps, and by how much?

The answers to these questions will be negotiated by the world’s largest crude producers — Russia, Saudi Arabia and the U.S. — at this week’s G-20 meeting in Buenos Aires, Argentina, and then at the OPEC+ meeting in Vienna, Austria, the following week.

The spectrum is huge, ranging from a potential 500,000 to as many as 2 million barrels per day (bpd) taken off the market, according to Ehsan Khoman, head of MENA research and strategy at the Dubai branch of Japanese bank MUFG.

via CNBC

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