FlowBank

296 days ago • Posted by Paul de La Baume

Oil rallies after Saudi Arabia cuts. $USO $XLE $SPY #trading

It’s fascinating to see oil rally after discussed it just last week. But what exactly is happening? 
Oil first jumped on Friday and now this morning it’s continuing to do so. Behind the surge, at its Sunday OPEC+ meeting, Saudi Arabia pledged to cut production again. This time by an extra 1 million barrel-a-day of supply. 
Clearly, the Saudis are trying to stabilise oil markets, despite Russia not playing along. Will it be enough? Most likely it could be for now to stabilise markets, but it doesn’t mean oil will soar back to its October 2022 levels either.

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