After managing to revive oil prices through production cutbacks, Opec now risks squandering its victory again by letting crude surge too high.
In the first quarter, co-ordinated production curbs by the Organization of Petroleum Exporting Countries and its allies helped oil rally the most in almost a decade, restoring prices to over $70 a barrel.
Saudi Arabia has made clear that it’s determined to keep supplies tight. That risks a repeat of 2018, when production cuts propelled oil to a four-year high, provoking a backlash from President Donald Trump and a hasty reversal by the kingdom.
‘It appears that the producer group is over-tightening the market, said Ed Morse, head of commodities research at Citigroup Inc in New York. Read More
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