Saudi Arabia signals OPEC cut coming for 2019
Oil has been tumbling on heavy supply levels recently and so this announcement over the weekend that Saudi Arabia will limit supply by cutting 500K barrels per day from December has resulted in US crude being bid. (up +1.64%)Furthermore, OPEC met and reckoned that supply could be cut by 1 million barrels per day.
On the US oil chart price found a temporary bottom around the Daily S1 Pivot level. So, we know that supply is going to be reduced and in the medium term we can expect higher oil prices. The question now is all about timing. Next month OPEC will meet and it is in this meeting we will get some from numbers of any supply cuts for 2019.
