Opec struck a more unified than normal stance during the extraordinary meeting in Algiers on 28 September, emerging from lengthy talks with a production target, albeit a flaky one. Oil markets reacted strongly, with Brent edging back towards, though not breaking, $50/B.
But serious questions remain over how this will be achieved, as well as more fundamental ones as to whether a short-term price boost is even in Opec countries’ best interests. US production already looks to have bottomed out and will capitalize on any price gains to rally further and replace any Opec reductions potentially dampening prices once again. (CONTINUED - 1583 WORDS)
