Long drawn out battle for Opec with oil balance | The National:
"Opec did too good a job managing expectations ahead of its latest meeting in Vienna, which concluded on Thursday. The extension of the deal by nine months, rather than six, was so clearly flagged that oil prices fell 5 per cent on its announcement.
Some vague rumours had emerged beforehand, that a longer extension was on the table, that Nigeria might be roped in, or that cuts might be deeper. The market’s reaction probably reflects the liquidation of speculative long positions, held to cover against an Opec surprise.
Instead of a repeat of the initial six-month term, the nine-month period, taking us to the end of next March, is ideal. It allows for spreading adherents’ compliance over a longer period."
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