Saudis to Cut Oil Output, AgainIn an aggressive attempt to shore up oil prices, the WSJ reports that Saudi Arabia -- which has already dropped its oil output -- will cut production a further 158,000 barrels/day effective Feb. 1, bringing its total cuts since last summer to 1 million b/d. This is nearly double the total cuts it 
agreed to during OPEC summits, and brings its output to "around 8.5 million b/d." Saudi oil officials say more cuts are on the way, but have been careful not to pinpoint a price target. Roger Diwan, an analyst at PFC Energy, a Washington industry consultancy, says this: "They are defending prices from falling below $55 quite aggressively... The Saudis, they don't talk a lot, so look at what they do, and that will give you the whole story." Yesterday crude traded down $1.41 to $54.01/barrel when the outgoing Saudi ambassador to the U.S. said current price levels are "adequate to meet the requirements of producing and consuming countries," and dismissed speculation that Saudi Arabia was trying to drive prices down in order to hurt Iran's export revenues.
