Goldman Sachs’ 3 reasons why Saudi oil output cut was ‘moderately bullish’ | Forexlive

Adam had the news out of the OPEC+ meet meeting as it happened:

Goldman Sachs response has followed. Net, GS see the cut worth up to $6 per barrel higher for the price:

the extra Saudi cut is worth +$1-6/bbl in terms of fundamentals,
depending on whether the cut lasts 1-6 months, and strength in
physical markets (borrowing a recession) should eventually boost
positioning and prices

Says its “moderately bullish”:

• 1.Saudi Arabia
  pledged to deliver an additional 1mb/d unilateral “extendible”
  output cut in July (bullish).
• 2. the
  voluntary cuts from the 9 OPEC+ countries are scheduled to extend
  until December 2024, from December 2023 previously (somewhat
  bullish).
• 3. output
  baselines will be redistributed in 2024 from countries struggling to
  reach their targets to those with ample spare capacity (somewhat
  bearish output effect, but bullish cohesion).

GS remarks come via the folks at Zero Hedge, more here.

Oil price update after the opening jump: