Why OPEC’s Breakthrough Might Be Short-Lived: QuickTake Q&A
OPEC Deal: Who Cuts Production and by How Much?
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The oil-producing nations of OPEC achieved an elusive consensus on reducing output. Can it last? OPEC members have broken quota agreements before, and the fruits of this cut -- the rally in oil prices that began immediately -- might last only a few months. It’s still far from clear that OPEC can reclaim its longtime role as arbiter of global oil prices.
To drain record global oil inventories caused in part by OPEC’s policy of unfettered production. Saudi Arabia, the group’s de facto leader, opened the floodgates in 2014 when it decided that protecting its market share was more important than price stability. Despite plunging prices, OPEC last cut production in December 2008.