Business and users of crude oil that did not buy into the lower for longer talk are giving thanks this Thanksgiving for having hedged their oil, gasoline and diesel purchases. Suddenly, the oil glut that many had predicted would last forever has suddenly turned into a very tight market.
Khalid A. Al-Falih, the Minister of Energy, Industry and Mineral Resources of Saudi Arabia and chairman of Saudi Aramco all but guaranteed an extension of oil production cuts to be officially announced at the end of the month despite the protestations by some Russian oil companies.
The US dollar depreciated against majors in a week that had few economic indicators for investors to digest and left the market speculating about the chances of a US tax overhaul and the impact of the developments in Saudi Arabia over the weekend.
There is a temptation to attribute the recent rise in oil prices to just the uncertainty of the political purge that we have seen in Saudi Arabia, but if you think that you are missing the larger point.