Oil Trade War

We are watching the oil trade war between Saudi Arabia and Putin. If Putin backs down and agrees to a production cut, then crude oil prices would rally back $10 to $12 per barrel the next day. This could take the stock market–and the entire commodity complex–higher at the same time. Saudi Arabia can produce crude for $17 per barrel, while Russia’s cost is $42 per barrel. Saudi Arabia is likely to win this war.

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