OPEC Surprises With 1.2 Million Barrel per Day Production Cut

The transcript discusses a 1.2 million barrel oil production cut, surprising markets that expected a smaller cut. Saudi Arabia played a key role in managing expectations, while Russia was less inclined to cut. The market had priced in a smaller cut, and the full impact is yet to be seen. Key details include the baseline levels for cuts and the need for proof of inventory reductions. Saudi Arabia aims to reduce exports to visible markets like the US, and Russia's compliance, especially in winter, is crucial.

What factors need to be considered regarding the baseline levels for the cuts?

What was one of the reasons for the inventory draw in the US mentioned in the text?