Opec announced a potentially momentous output cut aimed at rebalancing the market following the conclusion of its 30 November meeting in Vienna. The group pledged to cut 1.2mn b/d, and said that it expects to seal a deal with “key non-Opec producers” for a further 600,000 b/d.
This potential 1.8mn b/d cut – with the ‘non-Opec’ portion slated to be finalized at a 9 December meeting – is due to come into force on 1 January 2017, but is far from a done deal, and implementation will likely be problematic. The meeting is tentatively slated for Doha, but this has yet to be finalized. (CONTINUED - 1914 WORDS)