The chance could be very low that President Trump will have the ability to arm-wrestle Muhammed bin Salman of Saudi Arabia to provide extra oil.
That’s what Bjarne Schieldrop, chief commodities analyst at Skandinaviska Enskilda Banken AB (SEB), stated in a report despatched to Rigzone by the SEB group on Friday, including that “Saudi Arabia is completely pleased inside its OPEC+ cartel, with no seen plans of breaking out of that group simply to assist Donald Trump ship on his election guarantees of decrease oil and gasoline costs”.
“It’s nevertheless attainable that Saudi Arabia would settle for to extend manufacturing if new U.S. sanctions have been to drive down manufacturing and exports of oil from Iran and Venezuela and probably now additionally Russia,” he added.
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“However in no way simply to drive down the oil value as a result of Trump says so. Saudi Arabia in any case wants an oil value of $80 per barrel greater than ever,” Schieldrop continued.
Within the SEB report, Schieldrop highlighted that Brent crude “traded down 0.9 p.c, and for the sixth day in a row, yesterday [Thursday] to $78.29 … and beneath its 200dma following Trump calling for extra oil from Saudi Arabia so as to decrease the oil value, and as a consequence inflation after which rates of interest”.
Rigzone has contacted the Trump transition group, the White Home, the Saudi Arabia Ministry of International Affairs, the Saudi Arabian embassy within the U.S., and OPEC for touch upon Schieldrop’s statements. On the time of writing, none have responded to Rigzone but.
An announcement posted on the White Home web site on January 23 famous that, “on Wednesday, President Donald J. Trump held his first overseas chief name with Crown Prince Mohammed bin Salman of the Kingdom of Saudi Arabia”.
“The 2 leaders mentioned efforts to convey stability to the Center East, bolster regional safety, and fight terrorism,” the assertion added.
“Moreover, they mentioned the Kingdom of Saudi Arabia’s worldwide financial ambitions over the following 4 years in addition to commerce and different alternatives to extend the mutual prosperity of the US and the Kingdom of Saudi Arabia,” it continued.
An announcement posted on OPEC’s web site on December 5 highlighted that Saudi Arabia’s required manufacturing stage for 2025 and 2026 is 10.478 million barrels per day. That assertion identified that this required manufacturing stage “is earlier than making use of any extra manufacturing changes”.
A separate assertion posted on the OPEC web site on the identical day revealed that Saudi Arabia and 7 different OPEC+ nations determined to increase extra voluntary changes of 1.65 million barrels per day, that have been introduced in April 2023, till the tip of December 2026.
That assertion additionally revealed that these nations will prolong extra voluntary changes of two.2 million barrels per day, that have been introduced in November 2023, till the tip of March 2025. These might be “step by step phased out on a month-to-month foundation till the tip of September 2026”, that assertion highlighted.
A desk accompanying that assertion – which confirmed “manufacturing ranges with the section out of solely November 2023 voluntary changes, which might be utilized ranging from April 2025 till September 2026” – outlined that Saudi Arabia’s manufacturing will are available in at 8.978 million barrels per day from January to March.
The desk confirmed that the nation’s output will are available in at 9.034 million barrels per day in April, 9.089 million barrels per day in Could, 9.145 million barrels per day in June, 9.200 million barrels per day in July, 9.256 million barrels per day in August, 9.311 million barrels per day in September, 9.367 million barrels per day in October, 9.422 million barrels per day in November, and 9.478 million barrels per day in December.
To contact the creator, electronic mail andreas.exarheas@rigzone.com
