Saudi Arabia’s Oil Production Cuts Are Quietly Starting to Bite
- Headline oil prices are based on low-sulfur, density oil
- Prices for heavier grades are rallying faster after Saudi cuts
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The oil market is finally starting to flicker into life — and nowhere is that clearer than in the prices of crude like Saudi Arabia’s, where output cuts are quietly transforming the supply landscape.
The kingdom and its partners in the OPEC+ oil producer alliance have been restraining supply for months now, with relatively little impact on the futures market. Brent oil traded in London had been stuck around the $75-a-barrel mark for weeks. That shifted a little Friday, when the contracts rose to about $78, a level they have largely held at since.