OPEC+ Oil Production Cut Defies Expectations, but It Won't Stop an Inventory Rise

The OPEC+ meeting in Vienna announced on Dec. 6 a "headline" production cut of 500,000 barrels per day (bpd) for the first quarter of 2020, which came as a surprise to many observers compared to expectations earlier this week. The group, made up of OPEC and allied producers, also agreed to exempt gas condensates from the targets for the non-OPEC participants, benefitting Russia. The cuts were allocated among all OPEC and non-OPEC participants. The group also announced a follow-up ministerial meeting in Vienna on March 5-6 to assess results and decide whether to modify the measure....