Why OPEC Production Cut Rumors Have Already Begun

OPEC mulling the possibility of cutting even deeper than the 1.2mbpd committed under the aegis of the Vienna Alliance has been the main news of the past seven days. The root cause for such a seemingly hasty decision lies in crude demand slowing down across all continents – roughly a year ago most analysts would have forecast that demand would catch up with supply at some point in 2020 if the OPEC+ deal remained intact, current estimates deem it highly unlikely. The Vienna Alliance would also move towards a much stricter quota compliance as…