The October Surprise and the Future of Oil Prices

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Analysts are expecting oil prices to be above $80 per barrel over the coming years. OPEC plus members like Russia, Saudi Arabia and Iraq have large spending needs. Shale oil used to provide a competitor to OPEC plus because when oil prices rose, that meant shale became more profitable. That's no longer the case because shale is more focused on delivering profits rather than expanding output.

For decades, the United States and Saudi Arabia maintained an important strategic alliance, which gave the US access to Saudi oil in exchange for guaranteeing the kingdom’s security. But growing tensions between the two nations now threaten to rupture this relationship.

Bloomberg’s Ziad Daoud, Tom Orlik, and Nick Wadhams join this episode to explain what’s behind the US-Saudi rift, and why it could have far-reaching consequences for the US economy and potentially the 2024 presidential election.

Read the story: US-Saudi Oil Pact Breaking Down as Russia Grabs Upper Hand

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