The oil price rally has reversed after reports that Saudi Arabia, OPEC's biggest producer, is looking to accelerate the unwinding of its oil production cuts. The Brent forward curve has fluctuated in September, going from backwardation to flat and then back to backwardation. The oil futures markets remain bearish, with more money managers holding short positions than long positions in Brent futures. Saudi Arabia is ready to abandon its unofficial price target of $100 a barrel and increase output, signaling its resignation to lower oil prices. The kingdom is now committed to bringing back its production as planned on December 1, regardless of market conditions or oil prices.
1st October 2024
