Offshore oil rigs There are serious questions swirling around OPEC’s production cut deal, ranging from the size of the cuts needed given that production from the cartel rose through November, to the prospect of cheating from individual members. But even if OPEC stays true to its word and follows through on the output reductions, there are reasons to question how sustained a rally in oil prices can be. And they go beyond the obvious knock-on increases in U.S. shale production. Shale drillers have already started to hedge their production at higher prices since OPEC announced their intention to cut supplies by 1.2 million barrels per day last week. Companies are locking in oil sales through 2017 and even 2018 at prices above $50 per barrel. They crave the certainty of hedged prices even if that means forgoing any upside should spot prices surge higher. “Right after OPEC, U.S. producers […]