OPEC’s member countries and 11 other oil-producing nations are cutting production to counter a flood of US oil and gas. But it may not be working yet, Julian Lee writes for Bloomberg. OPEC expects that oil inventory will continue to increase by some 280,000 barrels a day this quarter, likely keeping prices low. The real change isn’t expected until the second half of the year, when inventory may shrink by 1.2 million barrels a day. The real question, according to Lee, is how long suppliers will be able to sustain the continued pain of the production cuts.
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