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OPEC Math Misses the Point | Commodities Briefing
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OPEC Math Misses the Point

Posted on 21 November 2016

Saudi Arabia’s energy minister Khalid Al-Falih said Thursday he’s “optimistic” that the agreement OPEC reached in September to limit supply will be implemented, with individual output ceilings for member countries. But don’t mistake him for a pushover.
The economics of a cut are compelling, but there’s more to it than just doing the math — and this could mean the group fails to reach a deal when it meets in Vienna on Nov. 30. An output cut of just over 1 million barrels a day would only have to boost prices by $1.60 a barrel for producers to be better off……………………………………Full Article: Source


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