Saudi unilateral 1 million barrel/day cut looks desperateSaudi Arabia just announced it would unilaterally cut 1 million barrels per day of crude production in the hopes it would encourage other producers to meet or exceed their commitments. How generous the Saudis have become...LOL!!!
What the Saudis know is there is still too much supply chasing too little demand. This is an act of desperation to keep prices from further collapse that would result in the disintegration of the OPEC+ agreement. You now have an even further appreciation on why I predicted the agreement would be irrelevant and impotent.
Global commerce is not bouncing back to 2019 levels until the year 2022 at the absolute soonest. This is hugely deflationary that is extremely energy bearish. Invest accordingly. JMHO. GLTA.