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image: Akos Stiller/Bloomberg/Getty Images

OPEC Stumbled Into A Balanced Market, Can They Stumble Into An Unbalanced One?

June 7, 2018

Via: Forbes

It speaks to the short-term views of the oil market that when prices fall, many analysts pronounce OPEC dead, and when they rise, it is declared reborn. The truth, as I remarked in an earlier column, is that the organization is primarily active (and successful) when markets weaken, and it becomes possible to get members to agree to reduce production to stabilize and/or raise prices.

The reality is that trying to achieve a price target is like trying to hit a deer with a bow and arrow from horseback—firing over your shoulder behind you, with a patch covering one eye. Data on oil consumption, production, and inventories are not just badly lagged, but incomplete.

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