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Saudis Cut More than Commitment, Lifts Prices
Oil prices rallied yesterday following the EIA weekly data and are up further today. Despite the rise in US inventories (4.1 mln barrels) more than four times greater than expected, participants focused on other details. In particular, the stocks in Cushing fell by almost 580k barrels, while the market had been looking for an increase of around the same magnitude. Also, the 17.4 mln barrel demand by refineries was the most in nearly 30 years. The bullish case for oil was predicated on rising demand, OPEC cuts and a natural decline in output in some countries, like Mexico. China's economy appears to be stabilizing ... (full story)