The principle for the Saudis is the range, likely $80-120/b (Brent).  Anything below that doesn't keep them in power for long, anything above that cooks the golden goose (i.e.: the world economy, thus demand, thus prices).   

 

We should not conflate daily tactics in pursuit of the desired range - some of which may well include confusing speculators and oil company capex planning - with pursuit of the principle.

 

Regards,

Naamkat

 

P.S. meaning if the price cap results in reduced Russian production thst feeds into a price runaway above $120, MBS might well agree to raise production (yes Cool, it's probably mostly inventories or temporarily unneeded summer air conditioning oil, not net new production) to defend the principle but position it as a friendly gesture to Mr. Biden to earn a 2-fer.