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Trump leaves door open for Saudi to flood the market

The news from Davos that President Trump will “ask Saudi Arabia and Opec to bring down the cost of oil” is certainly in keeping with his desire for lower gasoline prices and his clear intention to use energy as leverage over Russia to end the war in Ukraine. That said, lower oil prices will certainly not incentivise US oil producers to “drill, baby, drill” – particularly in high-cost Alaska. The downside risks to our already below-consensus oil price forecasts have risen.

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