The oil price, as measured by the most traded Brent Crude number, has been relatively stable since the agreement to limit output was implemented last year and excess inventory has been falling, aided by continued robust demand. Bloomberg reports the comments of OPEC Secretary General Mohammad Barkindo: “There is a growing consensus that … a rebalancing process is under way. We are gradually but steadily achieving our common and noble objectives.” We would take issue with the claim the objectives are noble. Stitching up the market to support higher prices is hardly a noble endeavor, exploiting as it does the leverage of the few (producers) over the many (consumers). But evidence suggests he is right in that the market is more balanced now than a year ago. The question is: where is it going from March of next year, when the current agreement to restrict output expires? “To sustain […]