Vienna

They done did it. OPEC actually reached a deal with significant production cuts. Now we will have to see if they will actually follow through with this. They say that they want to rest of the world to cut production by 600k BPD. And that will be a lot harder to enforce. If there is to be any hope of any other global reduction it will have to come from Russia. The US is made up of two many small operators, and Trump will be president. The man who wants to bring back coal. There is no way he would even consider a production cut.

And today Russia said that they will cut production by 300k BPD. Now what that actually means to Russia is a whole other matter. Does that mean 300k barrels less than they are producing now? Or 300k barrels less than what they budget their production to be in 2017. Or will they just do what they want, and say what the market wants to hear so that they can make a few extra dollars. Who knows. And as I have learned from following OPEC, words are wind and proof is in the pudding.