Not Everyone Gets Why OPEC Is Determined to Stick With Cuts
- New oil investment target may already have been achieved
- Major companies are boosting output while restraining capex
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OPEC and Russia seem determined to keep on cutting production even after their campaign to rebalance world oil markets achieved its main target. The primary justification for doing so looks shaky.
Sixteen months of output curbs have all but eliminated surplus oil inventories and prices are near a three-year high. But Saudi Arabia says the “mission is not accomplished yet” and is urging fellow producers to keep output restrained to fulfill a new priority: encouraging companies around the world to invest more in future supply.