General Discussion

Current level of $60 a barrel has already led to 14% of wells in the Permian Basin being left off line as they don't make money on only $60 per barrel and it has curtailed new well drilling there too. But, they don't want a highly chaotic market where the Saudi's can drop prices and raise production as a way to capture more market share which they have done in the past. As the Saudi oil is way cheaper to pump, they can make money with price per barrel way below even where it is now and that would seriously dent the US producers, make Venezuelan oil not close to being price competitive and generally roil economic markets. All things not in Trump's favor. No sure he thinks that far, but suspect Bessent and others around him do.