OPEC+ agree to cut 1.2 MMBOPD
U.S. shale received an early Christmas gift today, as OPEC and non-OPEC finally agreed to a new production cut agreement.

OPEC, Russia and their allies have agreed to a combined cut of 1.2 MMBOPD, relative to October production levels. OPEC itself will decrease output by 800 MBOPD, while Russia will provide much of the remaining drop. Current plans call for the cut to extend through June 2019, but OPEC will meet in April next year and the group will assess the effect of the cuts then. The goals may shift at that time.

Source: EnerCom Analytics

Iran secured an exemption from the cuts, a possibility that was a major sticking point earlier in the week. Libya and Venezuela will also be exempt from the cut...


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