Trump spoke with the Saudi king
Trump wants two things: Sanctions on Iran and low oil prices. Unfortunately for him, those two things don't go very well together. Fortunately, Saudi Arabia is Iran's sworn enemy and may be willing to blow up OPEC and turn on the taps in order to keep in Trump's favor.
All this after Trump tweeted this on Saturday:
Since Trump's tweet, officials have tried to backtrack. The White House released a statement that said "King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance."
A statement from the Saudi media also did not mention any intention to raise production by 2 million barrels per day. Current production is about 10 mbpd and there is about 2 million barrels that could be tapped, but it would take some time and put a strain on Saudi resources.
If this drama had all unfolded during market hours, it would have been a rollercoaster. Still, the risks have certainly tiled to the downside and oil is likely to dip at the open. But will the dip-buyers appear?
