NEW YORK (Reuters) - Oil soared on Thursday after a Russian official said Saudi Arabia had proposed that oil-producing countries cut output by up to 5 percent each amid a massive supply glut in the world market that has depressed prices for a year and a half.
Translation: Saudi Arabia wants Russia, Iran and the US to cut their output by 5%.
This is the game of who blinks first. So far it looks like everyone is losing.
Also, "up to 5%" isn't gonna cut it. Have you seen how full the reserve tanks are right now?