Monday, November 13, 2017

Saudi shakeup led to muted response in the oil market

"You may get another dollar or 2 upfront in the front months just because of the confusion. But in the long run, this is terribly detrimental to crude oil prices. 

Over the weekend, it had barely moved, and I thought that was fascinating that crude oil didn't move much at all. If this had occurred five years ago, crude oil would have been $5, $6, $7, $8, $9 higher in the course of two days. Instead it took a $2 or $3 barrel higher and it seems to be stalling.

Is Saudi Arabia losing its position of authority? Absolutely. The game has changed dramatically."