All eyes in the oil market are on OPEC’s upcoming meeting. But whether the cartel finally makes good on its long-awaited promise to cut production or not, we counsel taking a longer view on prices.
Production Cuts: Are We There Yet?
The Organization of the Petroleum Exporting Countries has been disappointing oil bulls for two years now. In fact, it was just about two years ago, when the group shocked markets by publicly opting not to cut production despite weak crude prices, that oil’s rout began in earnest. Traders seemed flummoxed that OPEC was abandoning its long-standing role as the unofficial regulator of global oil supply at a time when U.S. crude output was soaring and the world was awash in excess oil.
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