OPEC and the Art of the Deal

By Amanda Augustine and Marcial Nava

In a historic move, OPEC, along with non-OPEC nations like Russia, agreed to cut production after a prolonged period of low oil prices.

However, implementation and monitoring of the deal could be hampered by geopolitical factors. The deal was well received by markets, which saw it as a reassurance of OPEC’s capacity to stabilize the market after the collapse of previous negotiations. Although the OPEC deal is expected to have a positive but moderate impact on prices, it will certainly provide relief to several producing countries, reducing the probability of economic crisis and social unrest.