I have warned many times that OPEC will not, as a whole, be able to adhere to sustained production cuts. Most nations have only one relevant source of revenue - and that's oil. They have hard stop budgetary needs and risk social unrest tf they aren't met. The region in general is struggling to avoid an economic hard landing, and the fundamentals and macro outlook doesn't appear to be on their side.
Look at Saud 9 months ago...
I have tweeted about this several times. See below, and if you don't follow me on Twitter, than add me. We even have a blockchain-based solution for all to try.
As ability to influence oil markets lost, oil in downtrend, OPEC nations in trouble as burnrate eat foreign reserves https://t.co/xYpj8etmRr— ReggieMiddleton (@ReggieMiddleton) May 10, 2016
Saudi pumped a record 10.63M barrels/day. 70k more than previous mth. OPEC needs to cut 1.7M BPD for agreed 32.5M goal 42% more than planned pic.twitter.com/N6yGqSzaz2— ReggieMiddleton (@ReggieMiddleton) December 13, 2016
Here are some articles I wrote on the topic at Veritaseum.com:
- As Experts & Speculators Await Higher Oil Prices, I Anticipate A New Energy Paradigm: Monetize Your Outlook Through Veritaseum(Blog)"Low oil price is a function of excessive supply+true demand realization" - Reggie Middleton There should be no surprise that Saudi refused to negotiate on a oil production freeze. They, like all o ...Created on 16 April 201613.
- A Take On How Negative Interest Rates Hurt Banks That You Will Not See Anywhere Else(Blog)The Bank of Japan and the ECB are assisting me in teaching the world's savers, banking clients and corporations about the benefits of blockchain-based finance for the masses. How? Today, the Wall Street ...Created on 14 April 201614.
- The Bearish Case Against Oil Gets... Bearier...(Blog)... the price of oil, LNG and the impact Elon Musk is having on the oil industry. Stephen Schork of the Schork report was the standout personality of the panel (buyside vs sellside panelists) basically ...Created on 13 April 2016
These are relevant legacy BoomBustBlog research reports that involve the oil industry.