Oil Bounces Off Lows, Spikes On Saudi ‘Deep Cut’ Headline

HeOk, so the headlines are coming in from the OPEC, non-OPEC monitoring committee meeting in St. Petersburg, where ministers are convening to chat about market conditions.

And although not a whole lot is expected, crude is of course prone to sharp moves on headlines. Sure enough, this (out moments ago) seems to be having an impact:

  • AL-FALIH: SEES SAUDI DEEP CUT IN AUGUST

WTI and Brent both immediately leapt to day-highs on high volume:

WTI

Brent

This of course comes after a nasty decline on Friday tied to the Petro-Logistics report which frankly, seems to have punched above its weight in terms of the impact it had, perhaps signaling (again) how vulnerable this market is on the downside.

“That report Friday drove the price down below $48 today,” DNB Bank Chief Oil Analyst Torbjorn Kjus told Bloomberg by phone this morning, adding that “the market took it very negatively.”

Right. In fact, crude was trading at a one-week low prior to the above-cited Saudi headline.

WTI2

As for when this market will balance, Saudi Oil Minister Khalid Al-Falih’s answer, as he arrived at today’s meeting, was: “soon enough.”

Thanks for that.

Here are a couple of other notable headlines – and they’ll be more:

  • OPEC COMMITTEE TO MEET AGAIN SHOULD OUTPUT EXCEED CERTAIN LEVEL
  • SAUDIS WOULD SUPPORT OPEC DEAL EXTENSION BEYOND MARCH IF NEEDED
  • OPEC, NON-OPEC COMMITTEE SAID TO DISCUSS MONITORING OIL EXPORTS
  • AL-FALIH: SAUDIS CAPPING EXPORTS AT 6.6M B/D
  • AL-FALIH: SAUDI ARABIA WILL INSIST ON COMPLIANCE FROM OTHERS
  • AL-FALIH: SAUDIS WON’T STABILIZE MARKET UNILATERALLY
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