Crude sees eventful week on Saudi production cut; go long on any breakout above 6100
It was an eventful and volatile week for crude. It all started on Sunday with OPEC+ producers deciding to keep the current cuts until the end of 2024 while Saudi Arabia gave lollipop to the bulls by voluntarily reducing its production by 1 million bpd in July, to around 9 million bpd for a month. The aim behind this was to weed out the short position bears and trap them. Right now there are 148 million short positions which has increased by 140% compared to the previous month.
Before Sunday, Saudi Arabia said that they will “ouch” the short sellers, and they did just that but their action failed to move any sellers. After a jump of $2, crude oil fell again. It is a war by Saudi Arabia against Russia, where OPEC has said that there is no transparency regarding production data from Russia and Russia is failing to live up to its promise of cutting production. Right now the data is compiled by the shipping from Russia to China and India as Russia has stopped giving its official production number.
