The Wall Street Journal: OPEC cuts could backfire as rivals step into the gap, warns IEA

OPEC is facing headwinds with rising production from rivals, the International Energy Agency said Thursday, the latest warning that OPEC’s efforts to take barrels out of the market could backfire.

The Organization of the Petroleum Exporting Countries—the 13-nation oil cartel that controls over a third of global crude production—promised to throttle back its output by 1.2 million barrels a day, or almost 4%, on Nov. 30.

There are 11 countries outside the group—including Russia—that have agreed to join with cuts of 558,000 barrels a day on Dec. 10.

But in its closely watched monthly report, the Paris-based IEA, which advises key oil consuming nations, said other producers were stepping into the breach, as investment in their fields is bolstered by higher oil prices.

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