Saudi Arabia is planning to cut production by as much as 300,000 bopd by the end of summer.
This should lend some support to the price of crude.
Iran on the other hand will add 500,000 - 1 million bopd by 2016. So the reduction by Saudi Arabia could help the market absorb the increase of production by Iran.
An article by oilprice.com shale oil production in the US is expected to decline up to 830,000 bopd in the next six months. however this decline could be made worse in October when bankers are due to review many of the shale oil companies balance sheets and assess the risks of the loans given.
Link: http://www.thestreet.com/video/13236846/saudi-arabia-to-cut-oil-production-levels-at-the-end-of-summer.html
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