Saudis Are Right Back Where They Started - Bloomberg Gadfly:
"Saudi Arabia has ended up with precisely what it wanted to avoid. Its output cut has left it supporting rival producers, while its sacrifice of volume has yielded little in the way of higher prices. Crude fell back on Thursday to levels not seen since before the producer group announced its historic oil output cuts on Nov. 30. What went wrong, and where do they go from here?First things first. The oil price jumped after OPEC announced its decision to cut output by around 1.2 million barrels a day. It rose further when a group of non-OPEC countries joined them the following month.The crude oil market barely batted a sleepy eyelid when the cuts began at the start of January. It rolled over with a gentle snore when the first month's production figures showed an almost unprecedented level of compliance of over 90% among the OPEC countries who were party to the deal."
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