Overnight comments from BoA Merrill Lynch on Saudi oil:
- Saudi oil officials prefer oil market stability over volatility
- Say that while volatility makes it difficult for high cost "unconventional producers" to operate, it is damaging for Saudi Arabia and its long-term planning
On cuts to production:
- Unilateral crude oil production cuts are unlikely
- But willing to cut oil production in "transparent and verifiable conjunction with major OPEC and non-OPEC oil exporters"
The bank analysts note:
- There have been historically six cases of OPEC and non-OPEC production cut coordination, the last of which took place in 1998-1999