Under pressure from US President Donald Trump, Saudi Arabia has rushed to boost oil production — only to discover that global markets might not yet need it.
The kingdom’s crude output surged the most in three years last month, as Trump demanded his ally’s help in cooling gasoline prices and filling in the supply gap that will be created by his sanctions on Iran. Yet the Saudis are struggling to sell as much extra oil as they’d hoped, and are privately fretting that they may have opened the taps too quickly, according to people briefed by Riyadh in the last few days.
“Saudi Arabia and several other OPEC members have increased exports sharply ahead of sanctions on Iran, and the timing mismatch between these effects is pressuring oil prices,” said Martijn Rats, managing director at Morgan Stanley in London. Read More