Opec+ defends its surprise supply cut as being aimed at oil market "stability." One can only imagine the glum faces as they realised they had instead teed-up an 8% price spike. Oh well, at least the extra money will offer some small consolation.
This is the second jolt from Opec+ in the space of six months. Last October's was done when oil was already above $90 (3,068 baht) a barrel and drew accusations of implicit meddling in US midterm elections. As it turned out, oil demand was softening and the supply cut merely cushioned a continuing decline in prices rather than ushering in a sustained rally. The latest one may do the same -- but the uncertainties and stakes are much higher.
