Who could have seen this coming? With oil prices holding at 4-year lows, heavily pressuring around half of US shale production economics, the "secret" US deal (see here and here) with Saudi Arabia to crush Russia via oil over-supply in a slumping demand world appears to be backfiring rapidly for John Kerry and his strategery team.
The US dollar's upside momentum has faded, but oil prices remain depressed. Many observers try, too hard perhaps, to link the decline in commodity prices in general, and oil in particular, to the appreciation of the dollar. Yet the situation is considerably more complicated.
Saudi Oil Minister Ali al-Nuaimi said he was satisfied with the current price of oil and saw no reason to change output quotas, as he arrived in Vienna Monday for an OPEC meeting later this week."Am I comfortable with the price? Yes," Nuaimi, the de-facto head of the Organisation of Petroleum Exporting Countries (OPEC), told journalists ahead of the cartel's meeting on Thursday."The price between 70 and 80 (dollars per barrel) is an ideal price," he added, noting that he was "happy" with the current situation.