A little over a month ago, we reported that oil had reluctantly risen above $80 - and was about to surge far more - as the world would gradually realize that the oil production deficit in Q3 would grow to a staggering 2 million barrels per day amid sharp output cuts by core OPEC+ members Russia and Saudi Arabia.
Fast forward to today when oil has extended gains and is now some $10 higher than when we last looked at it, rising to the highest level of 2023, and with more gains in store after both Russia and Saudi Arabia surprised markets by extending their voluntary reductions well beyond the October whisper consensus, instead keeping a lid on output - so to speak - until the end of the year and ensuring that the oil deficit would grow that much bigger.
