OPEC Strategy Still a Winner for Members Despite Oil Slump - Bloomberg

OPEC Strategy Still a Winner for Members Despite Oil Slump - Bloomberg:

Given oil’s plummet at the end of last year, OPEC’s strategy to stabilize the market might look a bust. But where it matters most for the cartel’s members -- petroleum revenues -- it’s still a winner.

Crude prices in London have sunk back to the same range when the group began production cuts in early 2017, of between $50 and $60 a barrel, as record U.S. oil output and shaky fuel demand counteract the group’s efforts. That’s below the levels most of its members need to balance government budgets.

But while the price slide may be an alarming sign for the Organization of Petroleum Exporting Countries, the strategy of output restraint has continued to deliver what matters most: higher revenues for their export-reliant economies.