More on the OPEC deal… Bloomberg – Commodity Research Group

September 30, 2016 by Jim Colburn Leave a Comment

Bloomberg does a nice job describing how the OPEC deal came to fruition here: http://www.bloomberg.com/news/articles/2016-09-29/in-opec-hotel-dealmaker-s-bold-gambit-wins-saudi-iran-agreement

The Saudis made this concession:

“On the eve of the OPEC talks in Algiers, Al-Falih made a final concession, for the first time saying that Iran — alongside Libya and Nigeria — should be allowed to “produce at the maximum levels that make sense.’’”

which led to this deal:

“Five hours later, OPEC emerged with a deal: a production cut that set a target of 32.5 million to 33 million barrels a day, a little below current output. Brent prices surged, closing 5.9 percent higher. ”

Despite a sharp move higher in oil prices from the news, some traders are questioning how much OPEC will actually cut, given the concessions…

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