Saudi Arabia said it cut output by 400k bpd in August. In the monthly OPEC report just released, they had total Saudi output at 9.597m bpd from 10.005m bpd in July.
OPEC also cut 2014 global demand by 50k bpd to 1.05m bpd and dropped 2015 estimates by 20k bpd, which leaves it roughly unchanged at 1.21m bpd Full report can be found here
Update: I’m going to check this as it’s been pointed out that the report I’ve linked is dated August so I’ll look into it
Update 2: OK here’s the numbers as reported by Bloomberg
- Global demand cut by 50k bpd to 1.05m for 2014 (same as above)
- 2015 demand cut to 1.19m bpd from 1.21 mbpd
- OPEC output forecast cut by 200k bpd to 2.92m for 2015
- August output 30.347m vs 30.117m in July
Oil below $100 is tempting but the demand issue is a big bearish worry for prices. With Japan also looking to power back up the nuclear reactors they will have less reliance on oil imports as well which will add to the weak demand. The balance comes between demand and what the producers want as a price so if we get any further big drops in oil it might be wise to keep a bias towards the long side.
For WTI traders, remember that we’re entering kite season in the US so any big storms will put a premium in prices.