Saturday, June 30, 2018

Magic orb

From Saudi Press Agency, the oblique palace version of the Trump - Salman phone call which Trump says resulted in agreement that Saudi Arabia would raise oil production by up to 2 million barrels per day:

The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud received a telephone call from President Donald Trump of the United States of America. During the meeting, they discussed the distinguished relations between the two countries, as well as discussing developments in the region and the world. During the call, the two leaders stressed the need to make efforts to maintain the stability of oil markets and the growth of the global economy, and the efforts of producing countries to compensate for any potential shortage of supplies. 

There's nothing about 2 million barrels, and nothing about any specific commitment on any country to do anything -- producing countries could just as well refer to the United States!

Among other things, Trump doesn't realize that if he creates an expectation that there is a 2 million barrel per day increase coming, which does not materialize, the price of oil will go ... up!

No comments: