Having sent crude oil pries tumbling overnight by admitting they cheated on OPEC production cuts, Saudi officials are desperately trying to unwind that faux pas by claiming the over-production was purely for domestic storage. The problem with this “explanation” is that Saudi deliveries to China soared in January…
Bloomberg reports that Saudi Arabia didn’t raise supply to the international oil market in February, according to a person familiar with the kingdom’s oil policy.
The OPEC member increased the volume of oil in storage at domestic refineries and terminals last month, says the person, asking not to be identified because the information isn’t public.
If that’s the case then perhaps explain the Saudi deliveries to China soared in January…
Additionally the unnamed officiasl claimed that OPEC cuts will continue to reduce oil stocks in Q2. Which is odd given that they are building their own storage (according to them) and US crude inventories are at record highs once again.
Of course the machines did not care and just auto-bid WTI…
We wonder how long the half-life on this jawbone effort will last?
