- Trump aims to drive Iran’s oil exports to zero by ending sanctions exemptions that it previously granted to some of the Islamic Republic’s biggest customers.
- Saudi Arabia is ready to start pumping more oil if the United States indeed ends the sanction waivers they granted eight Iranian oil importers last November, citing a source that remained unnamed, but Riyadh will not rush into a reversal of the cuts. It will first examine the effect of the sanction waiver cancellation before it decides how to respond to it.
- US Shale data suggest the US oil production growth downshifted into a much lower gear. It will no longer have the same impact on the markets. The Baker Hughes rig data seems to confirm the EIA forecast, given that a downshift in drilling activity usually precludes a production slowdown.
- That’s important because commodity prices are often set on the margin. That means prices are set “by the country that is producing that extra barrel of oil, ounce of gold, or pound of copper. In the case of oil, the U.S. is producing that extra barrel of oil for the world to consume.”
- Russia’s finance minister Anton Siluanov said that Russia and OPEC might decide to increase production to fight for market share with the U.S. Lower oil prices would then have a negative impact on U.S. oil production, an argument that was also made as far back as late 2014 when the Saudis sought to drive U.S. producers out of business by opening the oil production spigots in spite of an already flooded global oil market.