The Danger Of Deeper OPEC+ Cuts

OPEC+ agreed to cut production by 500,000 bpd, sending oil prices higher on Friday. During mid-day trading, WTI was just shy of $60 per barrel, and Brent moved closer to $65. In total, the 1.2 million-barrel-per-day (mb/d) cuts from OPEC will rise to 1.7 mb/d. Those details had been reported on Thursday. But when OPEC+ made it official on Friday, Saudi Arabia also assured the market that it would continue with its voluntary cuts beyond what is required. With the Saudi cuts, the total contributions rise to 2.1 mb/d of reductions. The deal takes…