Saudi Arabia announced a voluntary 500k bpd oil production curb through year end and that was followed by several other gulf states joining in:
- Iraq to cut by 211k bpd
- Kuwait to cut by 128K bpd
- Oman to cut by 40k bpd
- UAE to cut by 144k bpd
Add it all up and that's 1,023,000 barrels per day, or about 1% of global oil output.
That's a massive swing in a physical market that already looked like it would tighten substantially into the summer. The move shows the vulnerability of the US after unloading about 1 million barrels per day for six months last year (and into this year).
What's especially notable is that this announcement goes through year end. It's also a slap in the face to reports that the UAE was thinking of ditching OPEC as their participation is particularly notable...more
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