Oil: Prices headed northwards – Danske Bank

In commodity markets, the oil price has edged higher on a drop in US inventories and renewed diplomatic tensions between Saudi Arabia and the US in the Khashoggi case, points out the research team at Danske Bank.

Key Quotes

“Notable US politicians such as Republican Senator Lindsey Graham have been increasingly vocal in their criticism of not least Crown Prince Mohammed bin Salman's involvement in the likely killing and the need for US punitive measures.”

“The comments follow a Saudi press release that any US punishment would be followed by 'stronger ones', triggering speculation on the oil market that the Saudis could use the oil price as a means. So far, Trump has backed the Saudi regime's alleged innocence.”