Questions on enforcing OPEC+ deal is laughableTalk of whether or not the impotent and irrelevant deal will be enforced and policed is laughable. The question is a complete distraction to the current market reality unless the cuts were over 30 million barrels per day for many months.
With cuts at 10 million barrels per day at best for two months and 6-8 million per day afterwards they have left it to the marketplace to make the cuts. With huge storage hubs already starting to fill up in Europe and elsewhere the marketplace will impose production cuts through deep price cuts, particularly in the front months. The pain for energy companies is in the early stages, not the late stages.
VET is poorly hedged in 2020 and even worse so in the second half of the year. VET is extremely vulnerable in today’s market environment. JMHO. GLTA.
https://www.google.com/amp/s/www.barrons.com/amp/articles/oil-prices-turn-sharply-lower-as-opec-meeting-disappoints-51586461742