“By removing an extra 60 million barrels from the market, the cut should ensure inventories continue to fall even if the epidemic surges again, vaccine deployment is slow, and international aviation remains restricted. Timing is critical. The cut will help to bridge the difficult first quarter, when consumption is always seasonally low and there is the greatest danger this year from the virus and vaccine delays.”
-John Kemp, Reuters’ analyst, commenting on Saudi Arabia’s unilateral 1 million barrel per day cuts planned for February and March. [Reuters]
