Saudis attempt to push back at data showing higher production
A statement on the Saudi energy ministry website says the nation is determined to stabilize the global oil market and that the rise in February output was due to storage adjustments and operational factors.
I don’t buy the storage story. If you want to increase storage, take it from your production. Don’t ramp up production because eventually that oil is going to make it to market. But the market jumped earlier on the storage report and has bounced again on the confirmation.
The Saudi story has been dominating oil trading today after reports they had reversed a third of the January cut. They say production that went to the market was 9.9mbpd but OPEC says 10.011mbpd was produced.
At the end of the day, Saudi Arabia doesn’t deserve too much of the blame because even at a higher production level, they’re still below their quota.