Oil Price - Jan 24

[dan_s]

President Trump will continue to try to talk down the price of oil, but the fundamentals show a tightening global oil market.

Trading Economics:
"WTI crude oil futures extended losses toward $74 per barrel after six consecutive days of losses, but were still down more than 3% for the week, the most since November, mainly due to President Trump’s call for lower crude prices. Speaking at the Davos forum on Thursday, Trump announced plans to urge Saudi Arabia and OPEC to reduce oil prices, and made moves to boost US production. At the same time, Trump threatened tariffs on China, Canada, and Mexico, raising concerns about global economic growth and oil demand. On the supply side, EIA data showed US crude inventories fell by 1 million barrels last week, marking a ninth consecutive decline and falling below the five-year seasonal average. Meanwhile, distillate fuel stocks saw a sharp drop, while gasoline inventories continued to rise."

What's Team Trump going to do about Iran and Venezuela?

Saudi Arabia will have a hard time convincing the OPEC+ members that increasing oil supply to please Trump is a good idea. It is not in their best interest to lower oil prices. However, Saudi Arabia and their pals will be more than happy to increase exports if Trump enforces sanctions against Iran.