The deal was reached with the Russians
T’is been long since things were looking up this good for oil. All OPEC members and Russia agreed in Vienna, that the oil Production cuts would be extended till the end of next year.
By doing so they hope that world stockpiles would fall below their 5-year average by q3 OF 2018. A full year since the coordinated effort to bring back the oil market from US shale the consensus is that the job still isn’t done.
WTI approaches 60 bucks, while Brent is already standing at $63. This means the cartel has already wiped out a third of oil’s retreat from it’s mid-2014 sorta peak of 120-ish bucks. Remember it fell to $30 in January 2016. Still, there’s a long way to go.
While restoring production US shale, apparently has Reached its max drilling capability. It’s either that or debt issues that they’re clearing.
And while that’s bad news for industry and consumers it means that the initiative is still in OPEC’s hands.