Oil Traders Don’t Buy The Saudi Cuts

Something odd is happening in the oil market. Despite news that Saudi Arabia would extend its voluntary production cuts for another month and possibly beyond, and despite Russia saying it would reduce exports by half a million barrels daily, prices are falling. Traders are selling their oil positions instead of boosting them in anticipation of the supply crunch. Logically, this is what follows a production cut, especially one of 1.5 million barrels daily. Yet there is no less logic in seeking to anticipate weaker oil demand in case of a global…