Don’t Hold Your Breath For Deeper OPEC Cuts

6 Jul 2017   OPEC

A month ago, oil prices appeared to be higher than they should have been, with weak demand, elevated inventories, and a recognition that the nine-month OPEC extension would be inadequate to balance the market. Oil sold off and dropped to the mid-$40s and below. Oil traders then bought on the dip, and bid prices back up over the past two weeks. Now, prices again look like they could be reaching an upper limit. “The air is getting thin for oil prices. The price increase just ran out of steam, which is not very surprising, given the newsflow of rising OPEC supplies,” Carsten Fritsch, senior commodity analyst at Commerzbank, told Reuters . According to Reuters data, OPEC exports jumped again in June, the second consecutive month of rising exports. Everyone tends to pay attention to the production data, but the volume of exports is arguably much more important. Reuters says […]

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