In line with the ‘Algiers Accord,' OPEC reported an agreement to limit its production to a new OPEC-14 production target of 32.5mb/d, “in order to accelerate the ongoing drawdown of the stock overhang and bring the oil market rebalancing forward. The Agreement will be effective from January 1, 2017.“ It will last six months but is “extendable” for another six months.
It did so by announcing “adjustments” to a “reference” case as follows. Three countries were not assigned cuts: Indonesia, which suspended its membership, and Libya and Nigeria, which are in the process of restoring their output from disruptions. Continue reading "OPEC's Cut Could Lead To American Oil Independence"