Thursday, December 11, 2008
Saudis Signal Deeper Oil Output Cuts Than Expected
There's a limit to what the Saudis and Opec can produce, but they have a lot of room to cut production and that's exactly what they are doing.
“The Saudis might have been impatient with the market’s skepticism, so they’ve decided some transparency is needed,” said Mike Wittner, head of oil market research at Societe Generale SA in London. “It shows they’re deadly serious about cutting already and serious about cutting more.”
Expect to see inventory overhangs reduced--even in this weak, global economy--and prices will rise again.
Read article here.