Saudi Arabia will challenge Trump with an oil cut deal

Saudi Arabia is likely to cut back on oil production in order to keep crude prices against Donald Trump's demands to keep pumping for prices to remain low.

Analysts believe that despite Washington's geopolitical influence on the kingdom, after fiercely defending the Saudi monarchy and accused of playing a role in the murder of Saudi journalist Jamal Khashoggi, Riyadh will pursue its own economic interests instead of respecting the wishes of President Trump.

The central question facing the oil markets remains that of production cuts. Who will close their faucets and how much?

The answers to these questions will be negotiated by the world's largest crude oil producers – Russia, Saudi Arabia, and the United States – at the G-20 meeting in Buenos Aires, Argentina, and then the United States. OPEC + meeting in Vienna, Austria, the following week. .

The spectrum is huge, ranging from 500,000 to 2 million barrels per day (bpd) withdrawn from the market, according to Ehsan Khoman, head of research and MENA strategy at the Dubai branch of the Japanese bank MUFG.

via CNBC

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Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. By joining OANDA in 2007, Alfonso Esparza created the blog MarketPulseFX. Since then, he has written extensively on central banks and global economic and political trends. Alfonso also worked as a professional currency
trader focused on North America and emerging markets. It has been published by The MarketWatch, Reuters, The Wall Street Journal and the Globe and Mail, and regularly appears as a guest commentator on networks such as Bloomberg and BNN. He holds a degree in Finance from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA specializing in Financial Engineering and Marketing from the University of Monterrey. University of Toronto.