Is This The End Of The OPEC Deal?
By Nick Cunningham,Oilprice – Apr 11, 2019, 6:00 PM CDT-Join Our Community
Oil prices ran into a brick wall on Thursday, falling more than 1 percent on news that U.S. inventories jumped and OPEC may be considering an exit from its production cuts.
Reuters reports that some OPEC officials are privately rethinking the extension of their production cuts beyond June. To date, the prevailing consensus has been that OPEC+ would need to keep the cuts in place through the end of this ye in order to rebalance the market.
The higher oil prices rise, the more the cracks in the cooperative arrangement will emerge. All it will take is another supply disruption in Iran, Venezuela or Libya to kill off the deal