May 27, 2017

WINNING THE WoT:

Market Body Slams OPEC (ROBBIE GRAMER, MAY 25, 2017, Foreign Policy)

Industry analysts say the latest price drop may be in part because everyone expected the announcement. The world's two top oil producers, Saudi Arabia and Russia previewed Monday's OPEC announcement when they agreed last week in advance to joint oil production cuts.

"A nine-month extension of the output cuts is already baked into prices," Olivier Jakob of Swiss consultancy Petromatrix told CNBC. "This shows there's not much more OPEC can do."

Industry analysts say investors may also be wary of rising output in Nigeria and Libya -- both are exempt from OPEC cuts as they grapple with their own internal conflicts. Iran, too, is exempted from sharing OPEC's pain as it struggles to regain market share after years of sanctions on oil exports.

Posted by at May 27, 2017 7:26 PM

  

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