Rating agency Fitch, after lauding OPEC’s decision to cut oil production by 1.2 million bpd, cautioned that prices are unlikely to move much higher than they are now, expecting them to “flatline” next year. Fitch is expecting Brent prices to average US$45 per barrel in 2017, up just one dollar from the 2016 average—a figure which is still below the breakeven price for Saudi Arabia, OPEC’s heavyweight. This outlook expresses the sentiment that although the upward mobility is still ongoing today, it is unsustainable in the long run. One of the biggest concerns for the agency is the uncertainty of the commitment of all OPEC members to the agreed cut, and in light of historical evidence, this uncertainty is well justified. In November 2014, when prices began their dramatic slide, Saudi Arabia blocked efforts by other OPEC members to keep the ceiling on production in a bid […]