Adam walked out of the OPEC+ meeting as it happened:
This was followed by Goldman Sachs’ response. Net, GS sees the cut as $6 per barrel above the price:
Additional Saudi cuts are worth +1-6$ per barrel in fundamentals, depending on whether the cut lasts 1-6 months, strength in physical markets (borrowing recession) will eventually boost positioning and pricing
Moderately bullish says:
- 1. Saudi Arabia pledged to deliver an additional 1 mb/d “extendable” production cut in July (Up).
- 2. Voluntary cuts from 9 OPEC+ countries are set to extend through December 2024, from December 2023 previously (somewhat bullish).
- 3. Output baselines in 2024 will be redistributed from countries struggling to reach their targets to those with ample spare capacity (somewhat downward output effect, but upward consolidation).
GS remarks come across as folks at More here.
Oil price update after the opening jump: