MarketWatch Interview: Saudi Arabia, the Khashoggi Killing, and Oil
On October 2, Saudi journalist Jamal Khashoggi entered the Saudi consulate in Instanbul and was never seen again.
The Khashoggi killing stirred up a lot of controversy surrounding how much the Saudi Arabian government was actually a part of it or knew about it.
In response, President Donald Trump threatened “severe punishment” if an investigation finds that the kingdom was in any way involved in the disappearance of Khashoggi.
After a meeting with Saudi Arabia’s King Salman, President Trump and Secretary of State Mike Pompeo said it is possible that “rogue killers” were behind the incident.
This week, I had the pleasure of speaking with Myra Saegfong and Barbara Kollmeyer from MarketWatch on U.S.-Saudi tensions versus oil demand.
Like I told MarketWatch, Trump may be looking for a way to blame this on someone other than the Saudi royal family. If Congress moves to sanction Saudi Arabia, it will cause oil prices to jump higher. This comes at a particularly delicate time for oil supply. U.S. sanctions will kick in on Iran next month, Venezuela’s oil supply continues to steadily decline. This means that any additional disruptions to the Saudi supply will cause prices to go up.
To recap some of their key points:
- Oil futures pared earlier gains on Monday to settle modestly higher as tensions between the U.S. and Saudi Arabia linked to a missing dissident journalist appeared to ease.
- November West Texas Intermediate crude US:CLX8 rose 44 cents, or 0.6%, to settle at $71.78 a barrel on the New York Mercantile Exchange, after touching a high of $72.70. It fell about 4% last week.
- December Brent crude UK:LCOZ8 the global benchmark, added 35 cents, or 0.4%, to $80.78 a barrel on the ICE Futures Europe exchange, after a 4.4% drop last week.
For the full story, read Oil Settles with a Modest Gain as Traders weigh U.S.-Saudi Tensions vs. Demand Worries.