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At OPEC’s Critical Moment, No Sign of Saudi ‘Whatever It Takes’

  • Cuts can have biggest impact on oil inventories right now
  • Saudi Arabia’s exports increased last month, tanker data show
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Now is the time to maximize the impact of OPEC’s oil production cuts, yet the market is still waiting for the group’s biggest member to show it’s doing “whatever it takes” to eliminate the global oversupply.

OPEC’s best chance to make a big dent in the lingering glut in the U.S., and with it reverse oil’s three-year slump, lies in the remaining weeks of peak summertime demand. That’s already become harder because of the resurgence in output from OPEC members exempt from cuts, while there are no signs yet that Saudi Arabia, the group’s de-facto leader, is willing to cut as deeply as it did earlier in the year.