Setting price and letting quantity adjust:

Daily Oil Note: OSPs a Critical Piece in the Supply Puzzle

A key source of market uncertainty is how much oil Saudi Arabia will produce and export over the next few months. We see reports that Saudi Aramco recently offered additional cargoes to term buyers, but reportedly many declined because pricing was unattractive versus alternatives. Tanker bookings also do not point to a substantial ramp up in Middle East liftings in coming weeks. In fact, they are running well behind the pace in June.