Ups and downs carry over into 2019

摘要

The year 2019 begins with oil producers again trying to rein in production. Supplies moved quickly from tight to bloated in relatively short order. The past year was an odd one, as it began with the original so-called OPEC+ deal expecting to be carried through the entire 2018. Compliance with production cuts was impressive, something OPEC is not necessarily known for, but in the first half of 2018 over-compliance was balancing markets much quicker than expected. At times, OPEC+ compliance rates topped 150% of the planned targets. The high compliance rates were part discipline and part happenstance. Troubled Venezuela’s crumbling production rates have helped the OPEC+ group reach its balance targets.