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Thursday, March 28, 2024

Oil Rebounds After Saudi Arabia Pulls A Draghi, Says Will Do “Whatever It Takes” For Stable Oil Market

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

The oil producers are rapidly learning from the central banks how to jawbone markets higher. With both Brent and WTI sliding as recently as ten minutes ago, suddenly a buying frenzy was unleashed following a Bloomberg headline which cited the Saudi Press Agency, according to which the world’s largest crude exporter was ready to pull a Draghi and would do “whatever it takes” for a stable oil market, and that it would cooperate with OPEC and non-OPEC members for stable prices.

  • SAUDI GOVT READY TO DO WHAT IT TAKES FOR STABLE OIL MARKET: SPA
  • SAUDI READY TO COOPERATE WITH OPEC, NON-OPEC FOR STABLE PRICES

Whether this means that Saudi Arabia, which has been pumping record amounts in recent months will slow down, is unclear: after all the entire strategy by the Saudis has been to put marginal, high cost producers out of business. So did they just wave the white flag of surrender? We seriously doubt it.

If anything, this is more of a market test to see just how much impact jawboning has on market prices. And judging by the immediate reaction, it is substantial.

  • BRENT CRUDE PARES LOSS TO TRADE 18 CENTS LOWER AT $44.48/BBL
  • S&P FUTURES PARE DROP TO 2.5PTS AS OIL PARES LOSS; NASDAQ -4PTS

Draghi would be proud.

Of course, whether the Saudis will actually do anything, well that’s a different story.

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