Why Saudi Just Abandoned Its Core Oil Rule
Few could argue with U.S. President Donald Trump’s key objective in launching ‘Operation Epic Fury’ against Iran on 28 February -- to prevent Iran from ever being able to develop a nuclear weapon. All members of his Cabinet fully backed this aim at the time, as they did the other three: to effect re
Source: OilPrice.com
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DW NOTE
Saudi Arabia has no price floor to defend because it cannot control the market. With the Strait of Hormuz shut for eight days and global supply down 5.7 million barrels per day this year, the kingdom abandoned targeting $100 Brent not because it changed strategy but because the strategy became irrelevant. When supply contracts 6% in twelve months, price discipline is someone else's problem.