Saudis Must Risk Trump's Wrath to Balance Oil Market: Julian Lee
- OPEC needs to cut more than a million barrels a day in 2019
- Any action risks riling Trump as U.S. lawmakers mull sanctions
Saudi Arabia needs to cut oil production and persuade fellow producers to follow suit if it is to avoid a further price rout. That risks angering President Donald Trump at a time when the U.S. is still considering its response to the assassination of Jamal Khashoggi, writes Bloomberg oil strategist Julian Lee.
Oil forecasts for 2019 from the International Energy Agency and the Organization of the Petroleum Exporting Countries show global stockpiles rising next year by as much as 1.7 million barrels a day, if OPEC continues producing at the current level of close to 33 million barrels a day. Saudi Arabia’s pledge to reduce daily exports by 500,000 barrels next month did little to reassure the market and earned a swift rebuke from the White House via Twitter.