Wednesday 13 September 2017

OPEC's Closing-Down Sale - Bloomberg Gadfly

OPEC's Closing-Down Sale - Bloomberg Gadfly:

"Like a retailer whose mid-season sale shades into an end-of-season clearance, and then into pre- and post-Christmas discount drives, OPEC's production cuts are becoming less an exception than the norm.

The latest reductions were pushed through by the Organization of Petroleum Exporting Countries and several other producers last November. They'll now be extended by at least three months from their planned end next March and possibly into the second half of 2018, people familiar with the matter told Javier Blas, Wael Mahdi and Grant Smith of Bloomberg News.

It's not hard to see why. A sharp recovery over the past three months has done little more than bring crude prices back to where they were when the cuts were first agreed upon. Curtailing output is meant to lift prices, not leave them standing still -- but maybe another crack at starving the market will succeed."



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