- December 5, 2016
- Posted by: Art Berman
- Categories: Audio/Video & Articles, Presentations, Presentations & Publications
This New Year’s resolution from OPEC is no more convincing than if a gamblers anonymous meeting sat down and all pledged to gamble less from January for 6 months.
How far into 2017 will it be before anyone can tell if any production cuts have been implemented?
What if OPEC tells everyone it has cut production but the oil supply keep inexplicably rising?
It would only take a small shift in any members economic fortunes for them to justify to themselves and to the others that they had had to increase production on account of whatever unforeseen circumstances. As soon as one breaks ranks the others will follow suit if they were actually cutting in the first place.
The markets seem to be placing a large amount of trust in the possible unity of a group of nations who are not particularly trustworthy and whose ‘interests’ are never fully aligned.
Is the OPEC production cat any more likely to materialize than the immanent central bank hiking cycle we have been hearing about for donkeys years now?