OPEC sets a quota, according to two sources cited by Reuters
- Production was 33.2 mbpd in August
- After reaching the target, OPEC will go to non-OPEC for output support
The earlier rumored level was 32.4 million so this essentially matches that. This is better than a production freeze and it looks very bullish for crude, baring a big change in the details.
Oil has broken above the downtrend since June and it looks like shorts are getting squeezed hard with crude up 6%.
