Zero Hedge: One month ago, Saudi Arabia shocked the world when it announced that it would unilaterally cut 1 million barrels a day of crude production starting next month in an effort to boost prices. The plan worked – perhaps too well – and quickly pushed Brent crude well above $60, or the price level where as we reported over the weekend US shale production tends to aggressively return production and where OPEC traditionally tries to keep prices from surging too high.
As a result, on Sunday we noted that “oil prices have reached a critical threshold where OPEC+ must decide whether to increase production, or risk losing market share again to U.S. shale producers.”
Fast forward just a few days later when “the decision” appears to have been made, because as WSJ reports, Saudi Arabia plans to increase oil output in the coming months, reversing January’s big production cut and adding as much as 1 million barrels of oil. Read More