I don’t publish more than one post a day anymore, but with the following headline showing up today, gotta’ run another:
5/25/17 – Wall Street Journal – OPEC Extends Oil Output Cuts but Glut Fears Persist – OPEC plus Russia plus 10 other producers agreed to extend their production cuts until March 2018.
Article says this has strengthened the relationship between Saudi Arabia and Russia, the worlds’ two largest oil producers.
The combined cuts for all the participants is around 1.8B bopd down from a year ago.
Article points out the obvious: OPEC+Russia had no choice but continue the cuts. If they didn’t, the extra oil would further drive down oil prices. Their production cut hasn’t actually succeeded in pulling prices up where they wanted, but the alternative would have been even lower prices.