How stupid are they?
Really got to ask the question about these Saudis.
I mean they saw the reaction to the oil price after announcing a full restart by end of September. What was the point of saying, or even trying, to make it happen earlier?
Already the oil price had backed off significantly since the attacks and there is no supply disruption. They could sell inventories at higher pricing. They are basically shorting themselves out of business with government budget red ink as far as the eye can see.
Maybe it was to support the Aramco IPO or highlight resiliency? Even then, what is the value of trying to IPO 5% of something that will never reach the dreamland valuation that they talked about, reduce revenues by 5% and make zero difference in their mid to long term fate?
$58 WTI and $64 Brent was about the best outcome for them or allowing U.S. shale to continue its slowdown or at least stop growth. Now by doing what they are doing, they are giving the ammo to short traders to bring Brent once again below $60. Nuts!