2008-01-08 Saudi Production

Saudi production increased marginally for January, and all indications are net demand is holding up at the higher prices.

While this bodes for continued price hikes, markets may have likely sold off on the news, believing the higher production is a sign of a proactive supply increase that will drive prices down.

It’s the difference between getting your offer lifted vs your bid hit. Saudi (and Russian) offers are clearly getting lifted.