Quotes from the news wire:
It will be enough for now but not enough for the fourth quarter to address a decline in Iranian and Venezuelan exports, there isn't a lot of spare capacity in the world. If we lose a million bpd of output from Venezuela and Iran in the fourth quarter, where will all these barrels come from? We are in for higher prices for longer.
It is an end of an era when Naimi fought hard and struggled to create a price environment which would have been good for both consumers and producers, we are moving to a new era where OPEC will no longer be managing the market while supply and demand will determine the price. The new Saudi oil leadership believes the market will dictate the price and that means higher volatility. We will see higher highs and lower lows.
The Saudis have said they are ready to increase supply if there is more demand. So over the past months they got more demand and they supplied the market with additional crude, i think Saudi Arabia is comfortable with its current production volumes and is happy to restore market share. They are unlikely to go much above 10 million.
The Saudis are probably worried about everyone else reducing capex as a result of low oil prices and about non-OPEC output falling off a cliff at some point. We all know that supply disruptions are unpredictable but they are certain, the increase in Saudi rig numbers is like a signal to the industry - let's be rational. We will need supply growth in the future.