BLOOMBERG.COM
At first glance, OPEC’s cuts haven’t worked -- global oil inventories remain well above normal levels. But the policy’s made a difference where it really counts: juicing the coffers of finance ministries from Baghdad to Caracas. The resurgent flow of petrodollars explains why Saudi Arabia and Russia have largely convinced everyone else in the deal to extend the production cuts another nine months to the end of March 2018. “Make no mistake, it is all about oil revenues,” said Bhushan Bahree, a senior director at consultant IHS Markit. “The bottom line for oil producers begins, unsurprisingly, with a dollar sign and ends in billions.”
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At first glance, OPEC’s cuts haven’t worked -- global oil inventories remain well above normal levels. But the policy’s made a difference where it really counts: juicing the coffers of finance ministries from Baghdad to Caracas. The resurgent flow of petrodollars explains why Saudi Arabia and Russia have largely convinced everyone else in the deal to extend the production cuts another nine months to the end of March 2018. “Make no mistake, it is all about oil revenues,” said Bhushan Bahree, a senior director at consultant IHS Markit. “The bottom line for oil producers begins, unsurprisingly, with a dollar sign and ends in billions.”
Read more>