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Biden wheels and deals with Saudi Arabia

The oil market has seen sluggish gains on Thursday morning, with Brent up 0.11% at $91.67/bbl, while WTI was trading 0.45% higher at $90.08 by the time of writing.

The US government has been making concerted efforts to bring down oil prices. Bloomberg reports that the main reason for the downturn in President Joe Biden's approval rating, as shown by recent pubic polls, is his handling of inflation and especially high domestic gasoline prices. According to the White House administration, Biden yesterday held talks with the King of Saudi Arabia, Salman bin Abdulaziz al-Saud, and during the talks, the two leaders committed to "ensuring the stability of global energy supplies." And while the details of the talks have not been disclosed, it remains unknown how the US, together with Saudi Arabia, would be able to ensure the “stability” of the market when Saudi Arabia participates in OPEC+ and is bound by its agreements with this alliance, and not with the United States. Also, the US Department of Energy does not rule out the resumption of oil sales from the SPR, which previously did not help reduce domestic gasoline prices in the US.

The Brent price is back on the rise this morning and could consolidate above the $92/bbl mark. Brent could sink as low as $90.8/bbl in intraday trading.

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