Strict production discipline by OPEC and its partners is the #1 reason why oil prices have managed to stage a remarkable recovery and stay relatively high after plunging to historical lows in 2020. Early this month, oil prices reacted positively after OPEC and its non-OPEC partners, aka OPEC+, reached a favorable agreement to start gradually curbing production cuts beginning in May. Starting next month, OPEC+ will allow an additional 350,000 barrels per day to join the markets, with another 350,000 coming in June and June and 450,000 barrels per day slated for July. Currently, OPEC is holding back just over 7 million barrels per day, with Saudi Arabia voluntarily cutting an additional 1 million barrels per day. Indeed, the OPEC kingpin has since taken on voluntary cuts of 1 million barrels per day from the beginning of February. That marks a sharp turnaround from the Kingdom’s stance just a […]