Saudi Arabia to cut production by 167,000 B/D
Aramco will start trading on Wednesday next week. There is an incentive for Saudi to keep the price elevated into the trading next week.
- Saudi Arabia will continue to voluntarily cut 400K B/D and will cut an additional -167K
- total OPEC+ cuts will amount to 2.1 million B/D after improved compliance.
- need to show are serious about output cuts
- no interest in fiddling the numbers on cuts
- we don't want oil inventories to rise in 1Q
- OPEC+ showing readiness by meeting in March