Op-Ed: Will OPEC Production Cuts Fail?

25 Apr 2017   OPEC

OPEC complies with its production cut deal, but one month before the cartel returns to Vienna to consider an extension, crude oil’s march toward market stability and a $65 per barrel price point is slow. A barrel of oil lingers priced in the low $50s and the global supply and demand ratio remains out of whack. Does that mean failure for OPEC’s six-month experiment to stabilize global markets and increase the price of oil ? Not according to the experts. When markets closed April 21, the price of WTI had dropped below $50 to $49.62 per barrel , underscoring investor weariness. That falls short of the $65 target – in fact, it’s far closer to prices in November before the historic decision by OPEC and non-OPEC member nations agreed to limit their production. WTI closed at $45.23 per barrel Nov. 29. After the agreement was announced Nov. 30, the […]

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