With a few days to digest the specifics of the OPEC+ deal, most analysts deem the result a success. But that does not mean that there are no pitfalls left for the oil market. On its face, the numbers are impressive. The group will cut a combined 1.2 million barrels per day (mb/d) beginning in January. “This agreement provided relief to oil markets, with Brent prices up $3/bbl initially, and the accompanying decline in fundamental uncertainty should further help reduce price and implied volatility levels from their recent highs,” Goldman Sachs wrote on Friday after the agreement was announced. OPEC will cut by 0.8 mb/d and non-OPEC will reduce by 0.4 mb/d. Crucially, because the baseline for the cuts is October and not November, the cuts will be significant. “By our calculations, this means that OPEC’s January output will be 31.7mb/d, about 1.2mb/d less than November; a significantly larger […]