Crude futures slumped as much as 5 percent on Thursday in hopes that President Joe Biden could encourage Saudi Arabia to produce more oil.
Biden will be meeting with Saudi leaders, including Mohammed bin Salman Al Saud. He purported in a recent op-ed in The Washington Post that his much-anticipated visit will cover a broad array of subjects, including security in the region, energy, and “reorient—but not rupture—relations.” But the president stopped short of saying if he would address the murder of journalist Jamal Khashoggi at the Saudi embassy in Turkey.
While industry observers note that Riyadh does not possess the additional capacity to expand output, the president might convince the Kingdom to inject enough crude in the global markets to help ease the global imbalance….