Saudis post price and then sell whatever quantity their buyers want at their posted prices. That means their output fluctuates with net global demand.

So this chart shows there’s been no drop in net global demand. And why the Saudis decided to cut price recently remains a mystery to all be a privileged few.

If Iran cuts back further this month, only the Saudis have the capacity to replace it, and if, as some believe, they don’t actually have excess capacity, control of price on the upside will be lost.

Meanwhile, the Seaway pipeline seems to be (irregularly) eliminating the WTI discount.