Remember in an earlier blog I recommended caution on the alleged oil cut given that many producers cheat and manipulate. Here is a good example:
SLIPPERY LOGIC TO RUSSIA’S OIL-CUT CLAIM
Spencer Jakob from the Wall Street journal wrItes that a big component of the recent oil-price rally was Russia’s pledge to contribute 300,000 barrels a day of output cuts in the first half of 2017 to supplement a deal by the Organization of the Petroleum Exporting Countries. Russian government data peg recent crude output at 11.2 million barrels a day, forming the basis for cuts.
The problem is that this puts output near a post-Soviet record and about 370,000 barrels a day higher than July. In other words, production since talks began about a coordinated output freeze has risen by more than the agreed cut to production.