Trump Iran sanctions just gave Saudi Arabia and Russia more clout in the oil market, so watch out for higher prices

CNBC/Patti Domm/5-10-2018

“Saudi Arabia said it will help meet world oil demand if President Donald Trump’s Iran sanctions create shortfalls, but analysts say it will do so only in conjunction with Russia, and the world may have to get used to higher prices as a result.”

MK note:  We must keep in mind that OPEC’s mission is not to keep oil prices down but to make sure it preserves the markets it has already established while increasing prices.  As pointed out in yesterday’s DMR, from the Western standpoint it is not so much the sanctions themselves that are a concern with respect to the flow of oil, but the possibility of military action affecting Middle East production as a whole.

This entry was posted in Today's top gold news and opinion. Bookmark the permalink.