Oil Cut Impact “Disappointedly Limited”

Oil BarrelsIn an interview given to Sputnik, Dr Carole Nakhle, CEO of Crystol Energy, comments on the effectiveness of the impressive adherence to the six-month agreement between OPEC and leading non-OPEC producers, concluding that the impact of the deal has been “disappointedly limited” as it has failed to add a sustainable upward pressure on oil prices. Dr Nakhle adds that there is a consensus that the agreement should be extended, but she cautions that the effectiveness of the extension depends significantly on some limiting factors; namely shale production, conventional oil production, demand growth, and inventories, among others. Dr Nakhle also discusses the role of Russia in the production cuts deal.

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