word of cynicism here ... OPEC countries are notorious for cheating on any pre-set “production quotas”
aside from Saudi Arabia (the one country that usually obeys cutbacks) the others just can’t resist the money, so this might not mean anything down the road ...
:: OPEC countries are notorious for cheating on any pre-set “production quotas” ::
It doesn’t matter.
Thye narrative is set.
When all the paper-shuffling is done, there will be a drop in OPEC production.
Again, “on paper” there will be a reduction.
It will be reflected at the pump but not likely ‘reality’ at the refinery level.
“ OPEC countries are notorious for cheating “
True, but it won’t be before its over $100 a barrel.
Oh, they’d love to cheat but UAE is probably the only one capable and rest of OPEC+ knows that. Lack of investment in future production is starting to bite. Lack of investment means lack of production ability. This lowering just recognizes that problem.
I agree. It’s always a panic move for OPEC but I think it will still drive oil higher at least in the short term. Long term, the state of the economy will bring oil back in line likely in the low 70s. But you know anything crazy can happen in the oil market these days.