Oil Prices

[Petertan]

Saudi able to increase it price of oil show that demand must be quite good. And with Iran still a long way to exporting it oil, oil can only go up hopefully. And not forgetting Yemen is still in hot spot.

It could also mean that Saudi's have "cornered" more of the market share since last year and now pushing up prices marginally where they can.

Supply is still running at peak in US. There was some news of a small drop in production last week which if sustained may mean oil production in US has peaked.

Think the Saudi main aim is to make prices go much lower to make the US shale producer close shop. This they are not totally successful yet but we shall see in the coming months what is their next move.

Could it be Saudi price is lower than mkt price, so even with the increase of 1$, customer are still happy to pay as it is still lower than official market price, and not because of demand. First, offer low to win customer, than slowly increase a dollar by dollar, business tactic.