Is OPEC Losing It's Mojo?
Published On: September 28, 2017
Crude Oil Report - August 2017
On November 30, 2016, in Vienna, OPEC and other oil producers led by Russia (NOPEC_R9+) reached an agreement to cut production totaling 1.81 million barrels per day (MMbpd) (1.2 MMbpd for OPEC and 0.6 MMbpd for NOPEC_R9+) for the first half of 2017. This was the first production cut in almost a decade, and the deal made among agreed producers was unforeseen to say the least, as up to that point, Saudi Arabia and other OPEC members were defending their global market share and pump-at-will strategy, which was only setting the oil price lower as more oil came onto an already oversupplied market. The WTI price rose by more than 9% in November following the deal announcement. A few months later, during the 172nd OPEC Ministerial Conference on May 25, the November agreement was extended for nine more months, pushing WTI higher, but only at 2% .... Download full report.August 2017