Saudi Arabia, it appears, had enough of shooting itself in the foot for its American 'partners', and has admitted for the first time that it slashed supply in September. As Bloomberg reports, OPEC’s biggest producer cut supply to mkt by 328k b/d in September to 9.36m b/d, from 9.688m b/d in August, according to a person with knowledge of Saudi Arabia’s oil policy. Prices in September were flat admit this supply cut which suggests along with the build in EIA inventories seen yesterday that Saudi Arabia may have also been forced by global demand weakness to cut supply through October also.
It appears the Saudi supply cut in September offset any demand weakness as prices remained flat... which makes one wonder what the plunge in October represents (global demand weakness or a flip-flopping Saudi Arabia?)
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The intrday reaction to the first public admission of supply cuts
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