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Outside the Box: How the OPEC deal breaks down for 3 big producers

OPEC got what it wanted with Wednesday’s agreement to cut oil production: higher prices.

But that is a double-edged sword, as those higher prices could lead to a surge in production by U.S. shale producers and others outside the Organization of the Petroleum Exporting Countries. And if those producers exacerbate the supply glut that has plagued the market, it will be much more difficult to reach another deal when this one expires in six months.

OPEC producers need higher oil prices to solve their own budget woes. But if they start losing market share, their resolve to prop up prices by squeezing supply could rapidly disappear.

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