The Brent oil price plunged -4% last night to $47.37 as an inept Saudi Arabia flopped all over its own deal:
Pesky Iraq and Iran have declared that they will not cut and Saudi has declared neither will it if they don’t. What did Saudi think its enemies would do when it panic back-flipped on its own market share strategy? At least prices are now falling to apply some pressure. Today I’m less sure that the deal will get done given how bumbling the Saudis are.
Turning to LNG, the indicative oil-linked contract price tumbled to $6.63mmBtu:
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