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OPEC delivered a 9 month extension
Yesterday, OPEC and major non-OPEC producers decided to extent the oil production cuts by 9 months, until the end of 2018, as was widely expected. Nigeria and Libya which were exempt from production cuts, now have been given “soft targets” according to news reports. WTI prices declined a little on the announcement, but recovered most of their losses within the next few hours. Moving forward, the outlook for oil remains highly uncertain, in our view. We are not ready to call for any rally in oil prices from current levels, considering that any sustained gains in prices could invite US shale oil producers to boost ... (full story)