OPEC's Agreement Is a Step Toward Stabilizing Oil Markets

The historic pact is part of a gradual, bumpy adaptation to a new energy order.

Soothing words.

Photographer: Akos Stiller/Bloomberg

One thing is clear from OPEC's agreement last week to reduce production: The cartel's leaders are evolving their approach as they try to cope with new structural market realities that have reduced the group's collective earnings by more than half over the last two years. Success, however, depends on how they manage some old familiar challenges. And the most realistic initial outcome is a range-bound market.

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