JWN Energy Group’s Daily Oil Bulletin
7 May 2018
The goalposts for international crude prices appear to have moved yet again, with Reuters reporting in mid-April that Saudi Arabia is now targeting US$80/bbl-$100/bbl. The Kingdom has plenty of reasons for wanting higher crude prices: the upcoming IPO of a small stake in Saudi Aramco to finance projects related to Crown Prince Mohammad’s Vision 2030 to diversify the economy away from oil revenue and its ongoing war in Yemen. But is a US$100 crude target plausible, given the well-known impact of high prices on global oil consumption and non-OPEC supply, and if plausible, how quickly could we again see triple digit prices?