- Crude oil rallies as much as 2% before pulling back, following a Financial Times report that Saudi Arabia is considering cutting crude exports by 1M bbl/day; WTI now +0.6% at $46.29/bbl.
- The report cites a recent note to clients from Bill Farren-Price, a consultant at Petroleum Policy Intelligence, who said the Saudi move would offset the rise in Libyan and Nigerian supplies.
- “This is what OPEC has resorted to, export cuts in order to jawbone the market higher,” says iiTRADER chief market strategist Bill Baruch. “We believe that OPEC members are getting restless and instead of this news showing how stable a deal they have, its shows the holes.”
- Also, Ecuador - one of the smaller OPEC producers - said it would not be able to hold its commitment to lower output by 26K bbl/day.
- ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM, OILK, WTIU, OILX, WTID, USOI
- Now read: A New Trend For Crude Oil?
Original article