The trigger for the surprise OPEC+ output cut yesterday may have been comments from the White House that it would struggle to make oil purchases this year and it would take years to refill the SPR. Previously they had said buying would begin "at or below" $67-$72 per barrel.
The comments reportedly irked Saudi Arabia who was privately told by White House that the US would step in to make purchases if oil prices fell.
When the White House ruled it out, OPEC leading countries went into action with a cut of 1.66mbpd. WTI crude oil is trading up $4.80 to $80.48 as US trading ramps up. It rose as high as $81.69 in a squeeze at the open.
The question now is whether oil can break the top of the 2023 range.
