Bromance to breakup: 4 ways the Opec deal could end early

Bromance to breakup: 4 ways the Opec deal could end early:

"Opec and Russia have surprised the industry with the success of their grand alliance as oil surges to a three-year high. As the unlikely bond enters a second year, there are challenges ahead. Here are four scenarios that could end their deal earlier than planned. Street fighting Tension is flaring in Opec members Iran and Venezuela, the two countries that RBC Capital Markets says pose the biggest risk of supply disruption. If either nation shuts oil output as a result, fellow producers could just decide the restraints are no longer appropriate, and instead boost supplies to prevent a damaging price shock. Discontent with economic stagnation has sparked the biggest street protests since 2009 in Iran, rekindling memories of the 1979 revolution that paralysed crude production. To top it, US President Donald Trump is threatening to pull out of a nuclear accord that helps Opec’s third-biggest producer trade with other nations. In Venezuela, food shortages and rampant inflation have threatened to trigger a massive social collapse. Even if the country can avoid that, the industry has already been hit so hard that production could slump anyway."



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