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Saudi Arabia is slashing oil shipments to US, a tactic that boosts prices and may rile Trump

 

Saudi Arabia's Oil Minister Khalid al-Falih listens during a news conference after an OPEC meeting in Vienna, Austria, November 30, 2017.

Saudi Arabia is slashing shipments of crude to the United States, a move that appears calibrated to boost oil prices after a swift and punishing sell-off.

The move could put the kingdom at loggerheads with President Donald Trump, who wants to drive down energy costs for Americans and frequently accuses the Saudi-led OPEC cartel of jacking up oil prices.

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Why Oil Prices Could Still Go Lower

Oil

Crude markets had a panic attack in August and September that sent prices soaring. Sanity is now returning. Prices have fallen but are likely to move even lower over the next few months.

The panic attack was caused largely by Trump’s August 7 announcement that sanctions would be re-imposed on Iran. Anxiety about the effect on oil supply and prices was reasonable but the reaction was hysterical.

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