After oil cut decision, will Saudi Arabia land one decisive blow on short-sellers?

After oil cut decision, will Saudi Arabia land one decisive blow on short-sellers?

Dubai: Who’s winning the battle for the oil markets? Just about two days after Saudi Arabia announced a voluntary 1 million barrel a day cut from July, oil futures took on an initial spike by 2 per cent - and now has retreated to hover around $75 a barrel, down 2.18 per cent. The feedback from the markets? It’s too early to say when a decisive blow will be delivered by the Saudi decision against oil market’s short-sellers, who are betting that oil still has some way to drop. Right now, since the Saudi and OPEC+’s decision on Sunday to extend oil production cuts, prices are yet to get that singular boost. “Saudi Arabia announced a unilateral oil production cut of 1 million barrels a day for one month on June 4 - and held out the possibility that it might extend this,” said Jim Burkhard, Vice President and Head of Research for Oil Markets, Energy and Mobility, S&P Global Commodity Insights. “In terms of world oil demand and supply fundamentals, the cut will likely expand a previously expected supply deficit in the third quarter of this year. Prices have been weak lately and the impact of this cut remains