For the first time since the Vienna OPEC deal in 2016, Saudi Arabia is no longer complying with the quota as Bloomberg calculates that in October, The Kingdom boosted crude production above its starting point for oil cuts.
Saudi output in October was 10.63m b/d, according to data published in OPEC’s monthly market report; compares with 10.502m b/d in September.
As a reminder, as part of OPEC+ supply cuts, Saudi Arabia agreed to curb production by 486k b/d below the starting point of 10.544m b/d, which was its October 2016 output.
WTI Crude is crashing over 5% on the news as supply glut fears are resurgent (amid global growth fears stoke demand anxiety)…
Saudi Arabia has fully complied with OPEC+ agreement in every month through May. Since then it has cut supply, but by less than it pledged to curb. October is 1st time it has increased output above the starting point.
WTI has now retraced 60% of the two-year uptrend…
WTI Crude is now down over 6% YTD to its lowest since Dec 2017.
