Trump thanks Saudi as oil takes a plunge!

• Oil recovered slightly on Wednesday after slumping more than six per cent.

US President Donald Trump thanked Saudi Arabia on Wednesday for lower oil prices, a day after pledging the US would remain a "steadfast partner" of the kingdom. A sharp drop in the price of oil is sending ripples through the global economy, lending more spending power to consumers - particularly for Americans' big holiday shopping spree - but potentially dampening investment in US oil production.

"Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82," he tweeted. "Thank you to Saudi Arabia, but let's go lower!" The remarks came a day after Trump linked his decision to continue backing the kingdom to his desire to keep oil prices low. "If we broke with them, I think your oil prices would go through the roof. I've kept them down," he told reporters at the White House. "They've helped me keep them down. Right now we have low oil prices, or relatively."

Oil recovered slightly on Wednesday after slumping more than six per cent, with traders fretting that Saudi Arabia may not deliver on planned production cuts. Trump's support for Riyadh has been taken by some observers as a move to prevent them from lowering output at the December meeting of Opec and non-Opec members.