Just like I predicted, OPEC and other major oil producers wrapped up a deal to extend output cuts into 2018 to help boost prices on Thursday.
In all, 24 countries that control about 60% of global crude production pledged to withhold about 1.8 million barrels a day of output-almost 2% of the world’s output.
But as you know, this extension isn’t necessarily a done deal yet.
Russia’s insistence of reviewing whether output limits are still needed at their next meeting in June could spell trouble in the latter half of 2018.
On Wednesday, I told you that Russia would be a massive matter that needs to be addressed following the meeting.
And Russia’s insistence on reviewing cuts in June proves that.
In fact, Russia is showing signs that it may not abide by the agreement for much longer.
And without continuing Russian support, production limits will not survive and that will have a serious ripple effect in the global oil market.
In the meantime, the market got the news they were expecting out of Vienna.
While, on the other side of the world, Venezuela’s oil crash continued – as you saw on Friday.
And oil prices shot up as a result – creating plenty of investment opportunities for us to target.