OPEC Has Success at Last, But Oil Revival May Be Short-Lived

21 Sep 2017   OPEC, Prices

When OPEC and its allies gather this week, they’ll have the best evidence yet that their efforts to clear a global oil glut are succeeding. It may prove short-lived. Crude prices have rebounded to a three-month high and the world’s bloated fuel inventories are shrinking, signaling that nine months of production cuts by the alliance of the Organization of Petroleum Exporting Countries and nations including Russia are at last paying off. Yet as U.S. shale oil continues to thrive and seasonal demand wanes, the surplus that has weighed on markets for three years looks set to come back. “The strategy finally has a window of opportunity in which it can work,” said Ed Morse, head of commodities research […]

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