OPEC’s Spare Capacity Will Calm Oil Markets In 2017

There is a wide variety of opinions on whether or not OPEC will deliver on its promised cuts of 1.2 million barrels per day, and a lot hangs in the balance. The difference between OPEC members complying with the deal and ignoring it altogether is a big one. It will go a long way in determining whether or not the oil price rally continues on its upward trajectory or begins to fizzle. But while large cuts from OPEC are generally very bullish for oil prices, there is a side effect on the oil market from those reductions that could mute the price impact.…