Oil bulls were all smiles this past weekend when non-OPEC producers lead by Russia agreed to cut production by more than 550k bpd for a six-month term beginning in January. The announcement was complimented by Saudi comments that the Kingdom was eager to take a leadership role in bringing total OPEC production down to 32.5m bpd and may even cut more production than they had agreed to in order to pull the physical oil market into balance. Unfortunately, Sunday’s early print of $54.51 would prove to be the high mark of the week as weakness in Cushing, bearish developments in Libya and a relentlessly strong USD ended the rally and pulled prompt WTI back down towards last week’s lows below $50. • In its market report released this week the IEA estimated that- if enacted- the agreed to production cuts from OPEC and non-OPEC nations would create a […]