I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand.

It's time for some money rehab.

Earlier this week, oil futures jumped after Saudi Arabia announced that it would cut

oil production this July by a million barrels per day for one month.

Although that window could be extended depending on how oil prices are affected, more on that

in just a second.

But first, let's give a shout out to my recent episode with Josh Brown, where we break down

the definition of futures.

If you need a quick refresher, I link that episode in the show notes.

But for this episode, what you need to know is that when oil futures rise, it means that

investors think that oil prices will go up.

And if oil futures fall, it means that investors think that oil prices will go down.

Let's put that back in context.

This announcement caused the benchmark for oil futures to rise to 1.5% in just one business

state to $78 a barrel.

So to close the loop and apply the quickie explainer I just gave you, this indicates that investors

think that cutting oil production in July will make the price of oil go up.

And this all makes sense, right?

We know this from our laws of supply and demand.

With less supply and demand holding study, prices will rise.

And that's exactly what Saudi Arabia is trying to do.

Stabilize, but ultimately drive up oil prices.

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