, Columnist
If OPEC Thought Its Job Was Done, 2019 Will Be a Nasty Shock
Producers face a supply glut, despite the return of sanctions against Iran. Surging shale means the group will have to extend output cuts.
Third time’s a charm?
Photographer: Omar Marques/Anadolu Agency/Getty Images
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It was meant to be a short, sharp shock. Instead, OPEC members are facing a long, slow grind with no end in sight.
The deal reached with several non-OPEC countries in 2016 to cut oil supply and drain excess inventories was meant to last just six months. But after last week’s ugly slide into a bear market for prices, the agreement looks likely to drag into a third year as the group faces having to make further cuts in 2019.