Oil bounced last night on the following from Bloomie:
The amount of oil Saudi Arabia supplied to markets fell last month, according to a person familiar with the country’s oil policy. Its production climbed.
The world’s biggest crude exporter supplied 9.36 million barrels a day last month, a reduction of 328,000 barrels daily from August, according to the person, who asked not to be identified, citing policy. The supply figure excludes what’s stored. Saudi Arabia produced about 100,000 barrels a day more than in August, the person said.
…“If this was an intentional cut by Saudi Arabia, I’d expect them to have cut the actual amount of oil produced and not just the supply to market,” Richard Mallinson, a London-based analyst at Energy Aspects Ltd., said by phone. “More is being read into the fluctuations than should be. I don’t see anything in these latest numbers to indicate a unilateral production cut.”
Me neither. And Saudi will need to cut 2 million barrels a day to really make a difference. China also announced that it cut Saudi imports in the month, opting for Columbian crude instead, though by much less than the Saudi fall. Still, to me to it says that the Saudi fall is more likely part of the cut and thrust of the market share battle than it is any deliberate production cuts. But tell that to Mr Market!
