Oil prices pop at the open as Saudi Arabia trims exports

Crude oil futures have spiked in early trade on Monday, finding support on reports that Saudi Arabia will cut production levels in December.

The move is likely designed to stop the slide in crude prices which had recently fallen over 20% from early October, leaving them in a technical bear market.

“Saudi Arabia has stepped in front of the Oil market bears proactively announcing they will reduce exports by 500,000 barrels per day in December,” says Stephen Innes Head of Trading Asia-Pacific at OANDA.

“Oil prices above $80 are never welcome by OPEC customers, and that seems to be a similar consensus among OPEC, non-OPEC and US producers.

“However, producers are concerned that the latest selling frenzy could see Brent oil reach $60 or below. So, it’s in OPEC’s best interest to tame the current supply glut.”

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes