Saudis say they will pump more if markets want more.
They post prices to their refiners and then fill all orders at their posted prices.
Their posted prices and spreads have also been moving in their favor lately.
Can it be more clear that the Saudis are ‘price setters?’
And with excess capacity very near zero, Russia and Iran are also price setters, and anyone else with more than a million bdp of output.
Price goes to the higher of where any of the price setters set their prices.
And the FOMC now knows this and will give the possibility of continuous price increases a lot more weight in their decisions.
Good luck to us!