Let’s see if this holds. The last one didn’t. The Saudis reversed their price hike shortly after they raised it.
Saudi Arabia, the world’s largest crude exporter, increased the pricing terms for Arab Light sold to Asia by the most in three years as demand improved. State-owned Saudi Arabian Oil Co. said Tuesday it will sell cargoes of Arab Light in April at 90 cents a barrel below Asia’s regional benchmark. That narrows the discount by $1.40 from March, the biggest price increase since January 2012, according to data compiled by Bloomberg. The company also raised prices it offers to refiners in the U.S. Read more.
US production is still very high and inventories are huge. This will be a good test to see whether or not US producers are the new, price setters at the margin.
Jo Weber Economist & Social Media Expert 