Market Ponders Thinking Behind Saudi Output Cut

摘要

Saudi Arabia’s decision to voluntarily cut its oil supply by 1 million barrels per day maintained harmony within the Opec-plus alliance of producers, but it has also led to much head-scratching. As the alliance’s de facto leader, Saudi Arabia is caught between a rock and a hard place. It needs to support oil prices by reining in supply without ceding market share to producers outside the alliance — most notably US shale producers.