In another timely smash and grab of the narrative, Saudi Arabia, judging well the twitch factor being experienced in markets after the broad sell off due to the US downgrade by Fitch, pre-empts the OPEC JMMC due today and extended its voluntary cut of 1 million barrels per day into September.
Politics work as follows: use everything at your disposal, even a 100-year-old, obsolete law called the Second Liberty Bond Act to gain political leverage, push your country to the precipice, step back in the last second and then be outraged when you are accused of recklessness and your creditworthiness deteriorates.
For most of the last 2-weeks it has been to products that oil has looked for its forward leanings, but the overnight remarkable draws in the API data sees crude take over the bull baton and give the market another spurring on.
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