OPEC History Shows Hard Work on Cuts Deal Is Only Just Beginning
- Adherence to output caps will be problematic, Petromatrix says
- Efforts by Libya, Nigeria to boost output may jeopardize quota
OPEC Deal: Who Cuts Production and by How Much?
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OPEC’s work isn’t done yet.
Oil traders and investors cheered Wednesday’s landmark deal to curtail oil production. But history shows compliance with past accords to be patchy at best. Even if countries stick to their output caps, those that won exemptions could make the collective target all but unreachable if they boost production. The difficulty of monitoring non-OPEC cuts adds a further layer of uncertainty.