MenuThis move is not unexpected. As I wrote here, President Joe Biden’s failure in Saudi Arabia in July to secure more oil production shook Saudi Arabia’s transactional relationship (security for oil) with the USA to its foundations. Saudi Arabia began importing Russian fuel oils for domestic use to free up more crude oil for export months ago, with the Biden Administration impotent to stop it. Meanwhile, Saudi Crown Prince Mohammed bin Salman (MBS) and Russian President Vladimir Putin have enjoyed close personal relations for years. These events had already helped push oil to above $90 per barrel. However, the oil futures on October 7 remained below $90 due to recession fears.
Continue reading here.