Here’s Where The OPEC Deal Gets Sticky

Oil prices plunged on May 25 when OPEC and its non-OPEC
partners extended their production cut deal through March 2018. At
the time, the market had not only expected deeper or longer cuts,
but also it also wanted to know how the group would return to ramp
up production after the pact expires. Five months ago, the lack of
an exit strategy was an equally (if not bigger) worrying sign to
the oil market than the slow pace of inventory drawdowns. In
managing expectations and communicating a longer-term strategy for
after-the-cuts, OPEC failed. Now,…

Oil prices plunged on May 25 when OPEC and its non-OPEC
partners extended their production cut deal through March 2018. At
the time, the market had not only expected deeper or longer cuts,
but also it also wanted to know how the group would return to ramp
up production after the pact expires. Five months ago, the lack of
an exit strategy was an equally (if not bigger) worrying sign to
the oil market than the slow pace of inventory drawdowns. In
managing expectations and communicating a longer-term strategy for
after-the-cuts, OPEC failed. Now,…