The Saudis said they are cutting oil production 1 mm bbls/day. Nope. They are cutting exports by 1 mm bbls/day. Specifically heavy oil.

[Roch + 537]

Specifically to select buyers on long-term contracts. 

Notice the Saudis have also decreased recent heavy oil shipments to thirsty U.S. Gulf Coast refineries ?

OPEC cutting production has always been a farce.  OPEC should have cut exports to control supply thus price.

The Saudi export cuts of Heavy Oil starting in March which increase WTI and Brent oil prices ahead of time demonstrates once again oil no longer trades on Fundamentals. 

Saudi current export cuts are meant to project an oil shortage. It's working even though there is an abundance of light and medium oil available.  

Saudi's ploy of cutting back heavy oil supply to the U.S. (again) and certain European and Asian countries is to teach them a lessen.  

OPEC Member UAE recently warned U.S. shale producers this week against ramping production too quickly. A coincidence ?

The top three heavy oil producers are Saudi Arabia , Venezuela (90% shut down) and Canada (transport limited).  Other also-rans are Mexico, Brazil and Iraq .

With two of the top three severely limited the Saudis can control the heavy oil price.  

Note: while the recent Saudi export cuts have benefited price the drastic drop in the dollar before and after the Saudi cuts is partially responsible for the price increase.  

Edited January 14, 2021 by Roch