When news broke on Nov. 30, 2016, that OPEC had finally agreed on a deal to cut oil production, its first since 2008, traders sent Brent crude prices leaping 9 percent to break the $50 per barrel threshold. But after the deal was implemented, and despite reduced output among OPEC and non-OPEC producers of 1.4 million to 1.5 million barrels per day, the price of Brent fell back below $50 per barrel on Wednesday.
There are a number of factors driving continuing soft prices, but OPEC members' compliance with the deal does not appear to be a significant one. This weekend in Kuwait, an OPEC committee charged with monitoring production output will meet to discuss compliance. The same meeting will also bring a key question into focus: Will OPEC members be willing to extend the deal beyond its June expiration?...
