2mm barrel per day cut doesn't make senseA 2mm bpd oil cut is very unlikely imo.
Brent is currently trading just below $92
While the Saudi's have a well head cost of under $10 per barrel, it has been widely reported that the need $85 per barrel to make their economy run the way they want it to run
As I have repeated a number of times, oil is the currency of the world. When the price of oil gets too high as it did a few months ago, the economy of the world begins to collapse because the price of oil is built into almost everything.
During the many months when OPEC+ was adding 400,000 barrels per month to recoup the cutback in production during the pandemic, OPEC didn't alter its plan despite the many cries to increase production faster. In fact, OPEC consistantly fell far short of being able to meet the increases.
The only possible reason for OPEC to cut back 2 mm bpd from a total that they are not even producing would be to drive the price of oil up. Driving oil prices up will almost immediately result in a drop in demand as we recently witnessed.
OPEC is not stupid and they have been running the oil game for decades. Their goal is to produce as much as they can for as much as they can for as long as they can without upsetting demand. Cutting 2mm bpd would immediately drive up prices and cut demand.
The 2mm bpd cut headlines seem like pretty much all headlines these days which means driven by agendas.
Surely OPEC won't suddenly turn stupid.