#fakenews reported Novak/Khaled agreed to immediately increase production by 1.5m bopd overnight, which in any case isn’t possible and whatever they increase production by is not the same as additional exports either, but anyway...
Might remember I was following this energy reporter’s tweets the other week, she is right on the case:
Amena Bakr
@Amena__Bakr
Senior Correspondent @ Energy Intelligence Group. Ex-Reuters Energy Correspondent. I cover Saudi energy policy & #OPEC.
Clarification: Novak's proposal is to ease the cap to 1.5 million bpd i.e. around 300,000 bpd increase in output which is inline with what Saudi Arabia wants #OOTT#opec
So whether something got lost in translation at the after game knees up, I don’t know, but it turns out it’s exactly what I thought, 300k bopd addition to the market, easing the 2016 output cap deal from the original 1.8m bpd cut to a 1.5m bopd production cut. I’ve also read this is for Q3 only with a review at an interim OPEC technical meeting in Sep. this is what Khalid and Novak really agreed to propose to OPEC this Friday. To put that in perspective, Libya alone just lost 240k bopd due to civil strife. Empty gesture.
When OPEC confirm this on Friday, Brent is going to see a short covering frenzy into the following week.
Everything else is #fakenews.
SXY Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
