Negotiations were relatively smooth, and OPEC+ did not deliver any major surprises when it agreed to ease the production cuts beginning in August. Widely expected, oil traders appeared satisfied by the move. However, the path forward for the group – and the oil market – remains rocky. In recent days, a flurry of reports from oil analysts and investment banks made the case that OPEC+ had room to add some supply back onto the market. Bringing 2 million barrels per day (mb/d) back online (easing cuts from 9.7 to 7.7 mb/d) does not come without risks, but lifting the production cap is a reasonable decision since supply technically trails demand at the moment, the thinking goes. The deal did produce one odd twist. The countries that lagged in their compliance in recent months were compelled by Saudi Arabia to “compensate” for their overproduction by cutting deeper next month. This […]