Opinion: OPEC surprises – but will it deliver?
Written by Richard Dyson – 03/10/2016 5:00 am
After weeks of speculation, OPEC showed it still has the power to surprise last week with its announcement of an agreement to cut back oil output for the first time in eight years. While short-term celebrations were rife, the question remains: Was the group just calling our bluff that its informal meeting would amount to more of the same, or will something actually be done?
While not expected, the tentative output agreement – to reduce production to between 32.5 million and 33 million barrels per day, down from the current 33.5 million barrels per day – came as welcome news to the oil and gas industry, as many of us presumed that this meeting would follow the usual pattern of producing no tangible results.
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