OPEC Has Few Escape Routes From Another Bear Market in Oil

23 Jun 2017   OPEC

Deeper cuts weren’t seriously discussed this week: delegates Resurgent Libyan, Nigerian production presents new challenge Oil’s back in a bear market and investors remain unmoved by last month’s agreement to prolong supply cuts, leaving OPEC and its allies with few remaining tools to boost prices. As Saudi Arabia, Russia and their allies reduce output, supply that’s beyond their control keeps rising. Libya and Nigeria — OPEC members exempt from the curbs — and U.S. shale producers are resurgent, undermining efforts to tame a global glut. Prices are back below where they were when the Organization of Petroleum Exporting Countries first struck its historic deal last year. Cutting even deeper — an idea rejected just a month ago — still looks unlikely. For now at least, the Saudi pledge to do “ whatever it takes ” to stabilize prices looks like not much at all. Further curbs could be necessary, […]

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