Tuesday 27 December 2016

Oil in 2016: the return of Opec

Oil in 2016: the return of Opec:
"After a two-year experiment with free markets, the pain of low oil prices forced the world’s biggest producers to join forces in 2016 and tackle a global supply glut.

Saudi Arabia-led Opec and non-member countries, primarily Russia, agreed after months of discussion and back channel diplomacy to cut production for the first time since the global financial crisis.

Prices look set to end the year in the mid-$50s — about double the 13-year intraday low of $27.10 a barrel Brent touched in January — with hedge funds more bullish on oil than they have even been. A growing number of analysts and investors believe the cuts will reduce stockpiles, bringing supply and demand into balance more quickly next year."

'via Blog this'

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