• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 1 hour Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 40 mins U.S. Shale Oil Debt: Deep the Denial
  • 18 hours EU to Splash Billions on Battery Factories
  • 23 mins The Dirt on Clean Electric Cars
  • 1 hour Owning stocks long-term low risk?
  • 2 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 1 day The Balkans Are Coming Apart at the Seams Again
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 13 hours The end of "King Coal" in the Wales
Alt Text

Oil Price Rally Boosts Electric Car Sales

While $100 oil is believed…

Alt Text

Barclays: $70 More Likely Than $100

While there have been plenty…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Saudi News Shifts The Long-Term Prospects for Oil

Aramco Oil

I have mentioned a few times here that I believe that one of the keys to understanding short-term moves in financial markets is to understand that traders overreact. When your working life is focused on one commodity or currency pair, or maybe a handful of stocks, any news relevant to what you trade takes on exaggerated importance and overreacting is only natural. That means that for those outside dealing rooms, fading an initial big move and profiting from the retracement is usually a good strategy. I still stand by that, but sometimes news comes out that is, to quote Joe Biden a “big blanking deal”, and that is the case with oil prices when it comes to this week’s stories out of Saudi Arabia.

In case you missed it, the country’s ruler, King Salman, or more accurately his son, Prince Mohammed bin Salman, instituted a massive corruption crackdown last weekend that involved the arrest of many prominent Saudis and more have been detained this week, bringing the total to over two hundred. On the surface that looks like a good thing, but many are questioning the Crown Prince’s motives given that graft has been a normal part of doing business in the Kingdom for so long. The theory is that this is more about consolidation and even extension of power than it is about corruption.

That theory is supported by the regime’s shift to a much more aggressive stance on foreign policy this week. The Saudis have called for international cooperation…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News