Oil Market Surprise: The U.S. And Saudi Arabia Act In Concert To Lower Prices (Podcast)

by: SA For FAs

Summary

Friday’s big OPEC meeting in Vienna will have a big influence on how much consumers pay at the pump over the next several months; it appears likely prices will moderate.

Saudi Arabia is ready to add back production it had agreed to curb in 2016, even though it is benefiting hugely from a nearly 75% spike in oil prices.

More important to Saudi Arabia than extra petrodollars is containing Iran, its arch-nemesis.

The U.S. has reimposed sanctions, but it doesn’t want its consumers to pay the price for that at the pump.

It isn’t oil producers calling the shots during today’s favorable market for energy producers; rather a tacit agreement between the biggest producer and the biggest consumer of oil appears to be holding sway.

Friday’s big OPEC meeting in Vienna will have a big influence on how much consumers pay at the pump over the next several months, and it appears likely that prices will moderate in the coming period. Though oil producers have been benefiting from rising oil prices, ironically, a tacit agreement between the biggest producer and the biggest consumer of oil appears to be holding sway to keep prices down, as I explain in this brief (2:12) podcast.