OPEC and its partners go for deeper cuts

At its 5-6 December 2019 meeting, OPEC+ agreed to continue its current production restraint of 1.2 million b/d while adding another 0.5 million b/d of supply cuts, only through March 2020. The group is taking a proactive approach to managing the market and will not commit to restraint beyond March 2020. The new restraint is similar to our "deeper cuts" case presented in the 3 December 2019 Macro Oils Insight. In this insight, we look at a surprising announcement made the Saudi Energy Minister at the 6 December meeting and the implications of the new agreement. Further analysis will follow in the upcoming 9 December 2019 Monthly Update.