The Organisation of the Petroleum Exporting Countries (OPEC) Russia and other major oil producers agreed this week to hold their slow their work down for a further 9 months.
These coordinated production cuts are aimed at reducing the huge supply surplus that sent crude oil prices to an all-time low prices last year.
While OPEC’s ability to put together an agreement has managed to keep the prices steady this year. Despite OPEC and Russia’s output cuts, oil stockpiles in the US and other major economies remain increadibly high and that’s spooking impatient investors.
‘It hasn’t worked so far,’ stated Matt Smith, Director of commodity research at ClipperData. ‘They are still miles away from achieving their goal. Those inventories have barely budged.’