OPEC Deal Could Send Oil To $70

The OPEC+ deal could push oil prices back to $70 per barrel next year, assuming all goes according to plan. The combination of raising the production cuts to 1.7 million barrels per day (mb/d), plus the unilateral over-compliance by Saudi Arabia, adding another 400,000 bpd of additional cuts, surprised the market last week. In addition, Saudi Arabia hopes to apply pressure to all member countries to comply with their allotted reductions. Oil prices jumped immediately after the deal was announced. One of the questions was how the group would allocate…