Tag Archives: OPEC

Extending the Cuts?

After years of market-led oil production, OPEC and a number of non-OPEC states agreed in late 2016 to cap oil production at 1.6 billion barrels a day (b/d) in an attempt to raise prices. In May 2017, the countries agreed to extend the cap through March 2018, and there is talk now of extending the cuts through the rest of 2018. With this possibility, we should take a look at the original cuts and see how they have performed. Continue reading

New OPEC Deal Won’t Amount to Much

(Originally published on December 7, 2016, as part of LSE’s Political Risk and Investment Society’s Spotlight Blog)


After two years of market-led oil production, OPEC, in conjunction with some non-OPEC states, has agreed to cut production to raise prices. The two years of market-led output resulted from the organization’s inability to reach an agreement as well as Saudi Arabia’s desire to force the US shale industry into insolvency. After oil prices tumbled to their lowest levels in a decade this past year, the oil cartel saw renewed urgency to set a cap to raise prices. Continue reading