After oil spiked earlier on an anonymously-sourced Reuters “report” that Saudi Arabia has offered to cut production in exchange for an Iran production freeze, a proposal which was promptly shut down by third party observes, moments ago WSJ reporter Summari Said effectively killed this particular attempt to spike the price of oil when she reported – also citing sources – that Saudis and Iranians have clshed over output freeze levels, and that Iran has refused to cap output.
This is what she tweeted in its entirety:
- Saudis, Iranians Clash Over Output Freeze Level–Sources
- Saudis Want to Use Secondary Sources for Output Freeze Levels–Sources
- Iran Wants to Use Govt Projections for Freeze Levels–Sources
- Disagreements in Vienna Go Unresolved Ahead of Algiers Meeting– Sources
- Iraq Won’t Cap Output Until It Reaches 4.75M B/D to 5M B/D–Statement
- Iraq Output Cap Implies Boost of 150,000B/D to 400,000 B/D Vs August
Oil has recouped some of its gain, but is still well above the intraday lows. We expect many more such headline headfakes in the coming days and especially early next week during the Algiers OPEC meeting.