Posted by WARREN MOSLER on May 2nd, 2011
The Saudis operate by posting prices for their refiners and then filling all orders at their posted prices.
It looks like the spike in demand for Saudi crude due to Libya has pretty much passed, and Libya is not back to full production.
So look for Saudi production to fall further when Libya comes back on line.
Prices, however, will remain at whatever level the Saudis decide to post, much like Donald Trump has been proclaiming. And with Trump having the President’s ear, there’s at least an outside chance the President figures it out and lets the Saudis know he’s on to them and works out a price cut?