OPEC's oil-cut pledge is vague - Report
According to a Reuters report, OPEC’s supply-cutting deal agreed last week was rather vague as it did not publish individual oil output targets.
Analysts are saying that if each OPEC country is believed to curb output by the expected 2.5%, the reduction would amount to something of around 700k bpd, smaller than the 800k bpd that was announced.
However, precise plans from top exporter Saudi Arabia boost the agreement’s credibility and actual supply cuts could exceed the promised volume. Saudi Arabia said that it would reduce output to 10.2 million bpd in January, going far beyond a 2.5% reduction from October production of 10.64 million bpd.
The headlines are really not helping the sentiment around oil markets, with WTI crude falling rather falling sharply to fresh daily lows, down over 1% to mid-$50.00s.