Commodities Corner: Here’s some bad news for oil in 2018

Major oil producers led by OPEC have greed to extend their crude output cuts through March of next year, but that could feed a glut of global supplies once the deal is done.

The Organization of the Petroleum Exporting Countries’ 14 current members and 10 non-OPEC members agreed Thursday to continue their cuts of 1.8 million barrels a day, generally from October 2016 crude production levels, through the first quarter of 2018.

Read:Why oil is plunging after OPEC extended its landmark output-cut deal

“We do not expect that they will extend [the cuts] much beyond that,” Martijn Rats, head of the European oil and gas research team at Morgan Stanley, wrote in a note dated late Thursday.

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