Despite Saudi Arabia pumping record amounts of crude, the energy complex has spiked 6% higher tonight after two major headlines. First, Russia and other non-OPEC nations agreed to join the OPEC pledge to reduce production; and then, in what some are calling their “whatever it takes” moment, Saudi Arabia surprised the market by saying it will cut more than previously agreed.
Saudi Arabia will ‘cut substantially’ below the target agreed last month with OPEC members, Energy Minister Khalid Al-Falih says.
Al-Falih’s comments follow a deal by non-OPEC countries to join forces with the group and trim output by 558k b/d next year, the first pact between the rivals in 15 years.
This post was published at Zero Hedge on Dec 11, 2016.