OPEC production cut "deal" - what we know so far

Author: Eamonn Sheridan | Category: News

Just waking up? OPEC have cobbled together an agreement (but not really)

  • OPEC says it will limit output to 32.5 to 33 mln bpd (this compares to the most recent known group production at 33.24 mln bpd)
  • So, that's a reduction of about 700K barrels per day 9depending on where in the range the cut comse to)
  • Now OPEC will try to reach an agreement with non-OPEC producers
  • A committee has been set up to choose how the cut will be allocated between members
  • The committee will report in November

If you're a cynic on OPEC sticking with an agreement, here's where I reckon the deal can break down, and quickly ...

  • OPEC will try to reach an agreement with non-OPEC producers
  • A committee has been set up to choose how the cut will be allocated between members, to report in November
On the first point, just good luck with that. On the second point - how to allocate cuts has been, and will remain, the sticking point. It always is! And they've announced a committee to deal with it. Oh dear.

OK,, we'll see. But don't hold your breath (srsly, DO NOT hold your breath until November, that won't work out well for anyone at all).

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