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[dan_s]

OPEC to form “super group.” The National reported earlier this week that OPEC and the non-OPEC coalition led by Russia are looking to cement their cooperative arrangement into something more permanent. The OPEC “super group,” as it has been dubbed, would be a cooperative framework that would last beyond the current production cut deal. They hope to have a draft agreement in place by the end of 2018. The super group would help answer some questions about how OPEC and its partners plan on exiting the current output agreement and what would happen next. Presumably, market management would continue indefinitely, depending on supply and demand conditions.

OPEC willing to overtighten the market just to be sure. Saudi oil minister Khalid al-Falih said this week that keeping the production limits in place and allowing the oil market to tighten too much is preferable to the alternative. “If we have to err on over-balancing the market a little bit, so be it,” al-Falih said in Riyadh. “Rather than quitting too early and finding out we were dealing with less reliable information ... Stay the course and make sure that inventories are where the industry needs them,” he added.

[dan_s]

Shale well productivity declines: https://www.linkedin.com/feed/update/ur ... 3699572736