|

Saudi Arabia strikes back at US over political rhetoric, threatens oil stability

Oil has become a political weapon once again following revelations of human rights violations by Saudi Arabia, prompting a global outcry against the Saudi regime, including threatening Tweets from US President Donald Trump, prompting lashback from Saudi Arabia.

President Trump threatened "powerful action" against Saudi Arabia over the weekend in response to the alleged slaying of a journalist within the walls of the Saudi embassy in Turkey; the missing journalist was an outspoken critic of the Saudi regime, and his disappearance at the hands of the Arab consulate has seen the global attitude towards Saudi Arabia shift dramatically over the weekend. 

In response to the US' threatened measures, Saudi Arabia is retorting with threatening measures of their own, highlighting a list of 30 potential counter-moves if the US strikes out against them.

Saudi Arabia is threatening to hit the US economy with targeted countermeasures that would impact the domestic US economy 'much harder' than the Saudi's, including curtailing investment in US resources as well as putting a halt to purchasing weapons systems from the US, a move that would drastically impact weapon manufacturers who have well-embedded ties to the US government.

Saudi Arabia is also reversing their cooling rhetoric on oil prices, warning that the Saudi government will not be hitting its oil production quotas, and will no longer rule out barrels hitting $100 or even higher, in a direct threat to President Trump's current stance on oil prices, who has frequently demanded that OPEC nations including Saudi Arabia do more to suppress currently-rising oil costs across the globe.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

More from Joshua Gibson
Share:

Editor's Picks

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold rebounds and retargets $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus in attention to the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline amid a marginal retracement in the US Dollar after the release of August inflation print.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook
Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.
Weekly focus – The hawks set the tone
Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.
Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight
The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.