Yesterday, oil quotes of Brent benchmark almost gone below the important level $50 per barrel. If the price was fixed below this mark, a new wave of sales, which would necessarily followed this event, would bring down prices very much.
The unofficial leader of OPEC became the rescuer of the situation. Saudi Arabia reported that oil exports fell to near-minimum levels of the past three years. In August, also expected reduce of exports, as the plans for September. Of course, the Saudis really want to see prices of black gold much higher so that at the time of the Saudi Aramco IPO get more profit from the sale of the company’s shares, but Saudis have obvious problems with that.
While the market has reacting to Saudi Arabia’s statements about export cuts, and to OPEC+ reports of the decline world crude oil reserves. But at any time, market participants may stop paying attention to this information.
The inventories decline does not affect to the change in supply, and the fact that Saudis sell less oil does not mean that buyers will not acquire it elsewhere. Therefore, it is not yet clear who wins in this situation.
At the same time, the market has almost completely ignored the decline maximum for 11 months of oil inventories in US storage.