Saudi Prince Trying to Raise Price of Fuel, Again?

The Saudi Crown Prince has said that its country is ready to back an extension of an oil output cut agreement, which sounds like it only means one thing: Time to raise prices at the pump.

Crown Prince Mohammed bin Salman on October 28th reiterated that the Kingdom of Saudi Arabia is ready to support the extension of an oil production cut agreement led by the Organization of Petroleum Exporting Countries (OPEC) in order to “balance global crude oil supply and demand.”

Translation: Threaten to cut supply and prices should rise.

“The Kingdom affirms its readiness to extend the production cut agreement, which proved its feasibility by rebalancing supply and demand,” the Crown Prince said in a statement.

Crown Prince Mohammed bin Salman also affirms that “the high demand for oil has absorbed the increase in shale oil production.”

Perhaps a bit more easily said than done.  The reality, as OPEC know all to well, is that  alternative fuels, notably liquid and natural gas, electric, hybrid and even solar are beginning to erode the absolute dominance of the legacy petroleum markets.

For fleets, it’s time to keep an eye on the pump and plan for alternatives.