Oil: the Saudis are establishing economic relations with Russia on the lines of OPEC+
Saudi Arabia continues to be a source of news on a global scale, both negative and positive for the domestic market. Possible sanctions because of the murder of journalist taken into account, but the probability of their imposition is less, although the rhetoric remains serious (it wasn’t murdered by British secret services cat Skrobala to introduce restrictions against the Russian economy). Washington comes out of the INF Treaty officially and fully unleashes his hands, but in fact violates it more than one year, so foreign policy only increased the pressure.
At the same time, the Saudis are establishing economic relations with Russia on the lines of OPEC+ and signing contracts with domestic companies (SIBUR – a possible candidate for the partnership), so talking about the suspension of projects in the oil industry yet. Fill the shortfall of supply is at stated maturity, so the demand for oil remains at the same level that was expected at the beginning of the cold period. It can be noted that Russian supplies, as Saudi will remain stable and the main incentive for additional purchases by market participants is outside of economic reality. Investors eyed the reaction of the SA to pressure from the West, albeit symbolic, so prepare for decrease in supply from Riyadh.
In the end, 80-80, $ 5 per barrel remains in a fairly narrow part of the auction. The neutral background and the expectations of investors regarding the actions of Saudi Arabia do not allow for major market movement, so the day is suitable for the stabilization of the General condition of supply/demand.
LLC “Analytical center “Salsbery”