Is OPEC+ Trying To Force A Recession?
Never have I ever seen Saudi crude exports this low going into peak driving season.
As the data from Kpler above suggests, Saudi crude exports for this month are averaging ~5.2 million b/d, which is below that of the 2020 lows. This is unprecedented on many levels, and the stunning compliance isn't just coming from the Saudis, everyone else is also following suit.
I am impressed. Not only is every other producer complying with the production cut, but the severity of the drop will impact global oil-on-water and many other factors in the months ahead.
While OPEC+ is currently guiding to higher production by the end of Q3, they are always capable of delaying the production increase post the US presidential election. So what's the catch here?
Is OPEC+ trying to force a recession?