Just like Fed hikes have a lag effect, so do OPEC export cuts..
https://www.zerohedge.com/markets/oil-market-hasnt-felt-full-impact-saudi-arabias-cuts-yet
OPEC oil export cuts have not marinated into oil markets
Re: OPEC oil export cuts have not marinated into oil markets
You should all read the article at the link above. It takes several months before oil exported from the Persian Gulf reaches the U.S.
The market is yet to see the full impact of Saudi Arabia’s production cuts, and oil prices could go far beyond $100 if its output remains low.
Saudi Arabia has pledged to extend its 1 million bpd production cut through December, a move that would tighten markets dramatically.
While Russia appears to be falling short of its pledge to cut exports, strong demand indicators suggest the market is set to tighten.
The market is yet to see the full impact of Saudi Arabia’s production cuts, and oil prices could go far beyond $100 if its output remains low.
Saudi Arabia has pledged to extend its 1 million bpd production cut through December, a move that would tighten markets dramatically.
While Russia appears to be falling short of its pledge to cut exports, strong demand indicators suggest the market is set to tighten.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group