Monday, March 30, 2020

US pressurizes KSA in petrol price war

Saudi-Arabia opened the floodgates in march inundating the market with cheap petrol. It is a bold move with the aim to get rid of competitors, especially american shale oil producer, even though all stakeholders will bleed severely writes french newspaper Le Monde:

"The Trump administration is stepping up pressure on Riyadh and Prince Mohammed Ben Salman, known as "MBS", to stop increasing production. On Wednesday March 25, in a telephone conversation with the crown prince, US Secretary of State Mike Pompeo urged Riyadh "to rise to the brink of the situation and reassure" the markets.
But for the Saudis, this chaos is the perfect opportunity to get rid of American competitors. The rapid development of shale oil, in Texas in particular, has put the United States back at the center of the game and created an inextricable situation for the kingdom. Since 2014, the increase in American production is such that it always threatens to lower prices."

No comments:

Post a Comment