Brent has jumped over a buck and a half after news came out that the Saudi’s cut their September oil supply by 328kbpd to 9.36mbpd. However, production increased to 9.70mbpd from 9.597m. The Saudi’s cut supply to the market and added to storage inventories.
There’s often differences between production and what comes to market, and in and out of storage but this highlights the markets expectations for cuts in actual production. Given the recent rhetoric from Saudi Arabia they’re not really interested in cutting production to bolster prices.
This is probably good news to fade but we’ve missed the top and the market is getting edgy for production cut news.
