Long History of Saudi Production Cuts vs Oil Prices
Over the last 14 years the Saudis have a history of making cuts in production when prices have weakened. This has happened 5 times during this period.
In 1998 going into 1999 when oil prices went from around $20 a beaael to about $15 a barrel Saudi production went from 8.7 mmbd to 7.4 mmbd.
In 2001 when oil price dropped from the $30 range to the $20 range, Saudi production went from 9 mmbd to 7 mmbd.
In 2003 when oil prices went about $40 a barrel to under $30 a berrel, Saudi production went from 9.6 mmbd to 8.0 mmbd.
In 2006 when prices corrected from $75 a barrel to $55 a barrel, Saudi production went from 9.5 mmbd to 8.4 mmbd.
During the recession of 2008 when prices went from $140 a barrel to $35 a barrel Saudi production went from 9.6 mmbd to 7.8 mmbd.
Based on past history IMO it is when not if the saudis will cut their production once more to support oil prices.
