Quick Context: OPEC+’s Deep Papercut
Rollercoaster pre-meeting news flow yields to large 2 MMbpd headline cut, but extensive quota underproduction means an effective cut of less than half that volume
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OPEC+ agreed to a 2 MMbpd headline cut to the producer group’s target crude output
Chronic underproduction across OPEC+ (and basing the cut on typical quotas instead of current production) means that the effective cut will be less than half that amount, likely around 0.89 MMbpd.
The politics around this meeting became especially fiery as the decision approached and today’s outcome is likely just the latest in an increasingly politicized tit-for-tat exchange in the world’s most important commodity market.