In spite of earlier reports on Thursday indicating that Saudi Arabia had not stuck by its commitment to reduce oil output in a bid to help rebalance the oil market, confirmation from the Wall Street Journal reaffirmed the nation’s vow to cut production. Although output has been cut to 10.058 million barrels per day, some of these reductions have been offset by rising US production which was at 8.770 million barrels per day as of last week.
However, the same report from the Energy Information Administration released on Thursday also showed that the Department of Energy had been underestimating production in October, with daily production likely at 8.800 million barrels per day versus the 8.500 million reported.
While a massive 7.051 million barrel reduction in stockpiles was announced for last week, inventories remain 35% higher than the 5-year seasonal average, helping keep a lid on upside in crude oil prices.
Saudis Implement OPEC Deal Cuts
Daily Analysis - 06/01/2017