“However, talk has recently proven to be cheap—if not worthless—with the cartel. Crude traders doubt OPEC will be able to stick to its plans of a production cut, which helped send prices down last week,” reports CNBC. “The global head of energy analysis for the Oil Price Information Service (OPIS) highlighted that issues would arise in any agreement because a freeze would be occurring at record production levels.”
[related_stories]Other oil traders believe 2017 will be fertile ground for an oil rally. While production has declined in the U.S., recently rebounding oil prices are encouraging exploration and production companies to revisit spending plans with some increasing capital expenditures. That has some oil market observers concerned about a rising rig count and the subsequent impact on crude prices.
“Meanwhile, another issue could arise from OPEC member Nigeria, if the nation floods the market with oil. The country’s production recently came back online following war-related outages,” according to CNBC.
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United States Oil Fund
