Oil Long🏌🏻 In the Blinken of an eye 🛢️⛳Let's not BRICS it The US diplomacy has awaken in the past few weeks and we see the following:
Biden stays quiet. Good news
Tony Blinken and others (Yellen included, watch the next post!) are making serious moves the past few days.
Let's talk Oil and Golf:
Antony Blinken, United States Secretary of State visits Saudi Arabia for 3 days.. not one, not two, that is THREE days!
What the media says:
''Blinken’s Visit to Saudi Arabia Caps U.S. Effort to Rebuild Ties
Biden aides are closely watching Crown Prince Mohammed bin Salman’s overtures to China, his attitude toward Israel and his balancing act with Russia and Ukraine.''
What the Professor has to say:
⛳BRICS are around the corner, going for a common currency.
⛳The US dollar, aka 'the petrodollar'* is the World's exchange currency only because Oil trade is done in USD
⛳Saudi Arabia gets to decide (at a huge degree, yes!) if the USD stays as world exchange currency!
⛳Saudi Arabia likes higher Oil prices..(look at recent production cuets)
⛳USA is making a move to normalize their relations with the kingdom and the best way (if not really the Only way) is to help see Oil prices rise!
⛳Inflation is better and the US can now make this move towards 90-130$ barrels...
All this is simplified, if you are into more details read below but first let's talk Golf!
🏌🏻Crown Prince of Saudi Arabia Mohammed bin Salman Al Saud is an emotional character
🏌🏻He kissed Putin recently while he didn't even shake hands with Biden (they did the stupid Covid knuckle thing which everyone hates)
🏌🏻At the same time he flirts with the Chinese and the BRICS
🏌🏻As a leader who loves his nation, he wants to re-shape his country’s economy and advance Saudi influence regionally and around the world
🏌🏻He seems to like Golf
🏌🏻 PGA Tour and European tour agree to merge with Saudis and end LIV Golf feud⛳
🏌🏻Good move, Prince happy, Prince adds prestige to his image,
⛳Good move from the US but still: Prince needs higher Oil prices to carry the transition for Saudi Arabia in the new era.... let's not forget that. Inflation is better, time to Pump the price up..let's not BRICS it!
CHART:
I see a breakout and my EMA confirms the move.
80$ is a round number that can act as resistance for a little while... once breached higher 88$ will be fast.
100$ is the mark I would target as first take profit level
120-124$ is the price i could see the Prince smile and the rest of us cry.. Unfortunately he might achieve it (sorry...)
*Understanding Petrodollars
Petrodollars are oil export revenues denominated in U.S. dollars. Petrodollars are not a distinct currency; they are simply U.S. dollars accepted as payment by an oil exporter.
One Love,
The FXPROFESSOR
Funny thing: Biden dissapears, the US sends the most serious diplomat they got for 3 days, then Saudi gets the Golf deal and Trump says: The “BIG, BEAUTIFUL” Saudi Golf Deal Is Great News real story!
Links:
www.nytimes.com
apnews.com
apnews.com
www.investopedia.com
finally the CHATGPT Version (Ai will need 50-60 years to reach my level):
why is saudi arabia important to the usa and the petrodollar
ChatGPT
Saudi Arabia is important to the United States for a variety of reasons, many of which revolve around energy production, geopolitics, and global finance. Here are some of the primary reasons:
Oil Production and Energy Security: Saudi Arabia is one of the largest oil producers in the world and has the second largest proven crude oil reserves after Venezuela. Given the importance of oil to the global economy and the U.S.'s status as one of the world's largest oil consumers, Saudi Arabia's role in global energy markets is key to maintaining stability in energy prices and ensuring reliable oil supplies.
Geopolitical Stability: Saudi Arabia is a key ally for the U.S. in the Middle East, a region which has long been a focal point of U.S. foreign policy. Despite disagreements on certain issues, the strategic partnership between the U.S. and Saudi Arabia has been instrumental in addressing regional challenges, such as containing Iranian influence.
Global Finance and the Petrodollar: The petrodollar system refers to the practice of selling oil in U.S. dollars. This practice, initiated in the 1970s, started when Saudi Arabia and the U.S. reached an agreement to standardize oil prices in dollar terms. This created a significant global demand for the U.S. dollar and helped establish the U.S. dollar as the world's dominant reserve currency. Today, this system plays a key role in global financial markets, and any disruption to it could have wide-reaching implications.
Counterterrorism Cooperation: Saudi Arabia and the U.S. have a long history of cooperation in counterterrorism efforts. While there have been challenges and controversies in this area, cooperation between the two countries remains crucial for regional security.
Trade and Investment: The U.S. and Saudi Arabia have significant trade and investment ties. The U.S. exports a variety of goods and services to Saudi Arabia, and in turn, many U.S. companies invest in Saudi Arabia.
Diplomatic Influence: Saudi Arabia's status as a leading member of the Organization of Petroleum Exporting Countries (OPEC) and the Gulf Cooperation Council (GCC), as well as its status as a major Islamic country, grants it considerable diplomatic influence. This can be beneficial to U.S. interests in these organizations and in the broader Islamic world.
In conclusion, while the relationship between the U.S. and Saudi Arabia is complex and sometimes contentious, Saudi Arabia's importance to the U.S. and the petrodollar system is largely tied to its role in energy markets, its strategic location, and its geopolitical influence.
My last Oil post:
check my previous Oil chart posts below..they been a ''hole-in-one'' ⛳
