Commodities Corner: Here’s what may shake OPEC’s commitment to oil production cuts

Oil is among the biggest commodity gainers in 2019, with prices up by more than 20% — a testament to the success of the output cuts agreed to by major crude producers at the start of the year.

However, the cuts eventually may run head-on into the effects of increased U.S. shale production and more output from other sources. That could test the resolve of some members of the Organization of the Petroleum Exporting Countries, as well as their nonmember allies, which include Russia.

“High compliance with the OPEC production cuts is impressive and clearly a significant driver of the rally in crude oil futures,” says Marshall Steeves, energy markets analyst at Informa Economics.

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