Why didn’t Saudi Arabia cut oil output and instead increased it? The answer is Donald Trump. I believe Trump made a deal with Crown Prince Mohammed bin Salman (MBS): Increase oil output to help lower inflation in the U.S., and in return, he would offer rewards or support. Shortly after Trump's tariff announcement was lifted, MBS announced an output increase. This move seemed illogical at first, but it reveals a deeper strategic arrangement. It’s a major political favour that Trump owes MBS. Their agreement likely extends beyond oil—possibly involving broader issues like Iran, the Houthis, and Israel. Obviously, MBS followed through initially, but did not continue. China’s counter-tariffs disrupted Trump’s original assumptions. The bombing in Yemen and its consequences were beyond the original plan, and as a result, oil prices began to reverse.
WDS Price at posting:
$20.07 Sentiment: Buy Disclosure: Held
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