Oily Outcome

Surprising many, OPEC announced it may cut production late this year by as much as 700,000 bbl/day, an amount representing about two-thirds of the current global oversupply. However, it’s also an amount easily made up by US fracking activity that is already starting to rise. Moreover, any OPEC production reduction is far from a sure thing; they put off till November deciding which nations cut how much, the difficult part.