Saudi Arabia, the world’s biggest crude exporter, reduced supply to markets last month, according to a person familiar with the country’s oil policy. Prices rose after the report.
The largest producer in the Organization of Petroleum Exporting Countries cut September supply by 328,000 barrels a day, to 9.36 million barrels daily, from 9.69 million barrels in August, according to the person, who asked not to be identified, citing policy. Saudi supply fluctuates each month depending on how much crude the country puts into storage.
“The market is reacting instantly to any news on oil market fundamentals,” Gerrit Zambo, an oil trader at Bayerische Landesbank in Munich, said by phone. “So far these gains have been only a short-term reaction, and then the market seems to go back to its bearish sentiment.”
Crude has collapsed into a bear market as producers including Saudi Arabia cut export prices. Global supplies are rising as the U.S. pumps the most in almost three decades, Russia’s output nears a post-Soviet record and China’s economy is showing too little demand. Angola, Libya and Venezuela have all said OPEC needs to take action on prices, with the Latin American nation’s President Nicolas Maduro calling for an emergency meeting in a televised address Oct. 17.