Oil trader expects Saudis to keep production cuts in place until oil hits $110

110 USD? Let’s be honest but that’s not so far from where oil was just 5 years ago. It was a bit over 80 USD but over those last 5 years, inflation has taken a massive bite out of the value of the money we use. So what would 110 USD in 2024 correspond to in 2019? Certainly not a bit over 80. In a sense, the Saudis are just trying to compensate for what they lose due to inflation. This does not mean that I believe it will work. Oil prices do what they do and the long-term indicators worldwide point towards widespread economic depression. Not a good environment for high prices. 

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