Bloomberg reports Saudi Arabia to target U.S. with sharp export cuts
“After flooding the U.S. market in recent months, Saudi Arabia plans to slash exports to the world’s largest oil market in the coming weeks in an effort to dampen visible build-ups in crude inventories. American-based oil refiners have been told to expect much lower shipments from the kingdom in January than in recent months following the OPEC agreement to reduce production, according to people briefed on the plans of state oil company Saudi Aramco.”
USAGOLD note: This embargo will likely find its way to consumer and producer price indices. Oil prices and the energy complex as a whole reacted immediately with higher prices. Gold is marginally affected out of the gate, but let’s see how this plays out over the next several days.