Adam had the news out of the OPEC+ meet meeting as it happened:
Goldman Sachs response has followed. Net, GS see the cut worth up to $6 per barrel higher for the price:
the extra Saudi cut is worth +$1-6/bbl in terms of fundamentals, depending on whether the cut lasts 1-6 months, and strength in physical markets (borrowing a recession) should eventually boost positioning and prices
Says its "moderately bullish":
- 1.Saudi Arabia pledged to deliver an additional 1mb/d unilateral “extendible” output cut in July (bullish).
- 2. the voluntary cuts from the 9 OPEC+ countries are scheduled to extend until December 2024, from December 2023 previously (somewhat bullish).
- 3. output baselines will be redistributed in 2024 from countries struggling to reach their targets to those with ample spare capacity (somewhat bearish output effect, but bullish cohesion).
GS remarks come via the folks at Zero Hedge, more here.
Oil price update after the opening jump:
