Doubts Over Oil Output Agreement Grow

Oil futures lost more steam Tuesday on doubts the Organization of the Petroleum Exporting Countries will dole out any strong measures to enforce production caps at their ongoing meeting.

OPEC officials have said the purpose of the two-day gathering, which wraps Tuesday, is to discuss ways to improve compliance level to the deal, which went into effect in January in hopes of reducing historically high global stockpiles of crude.

But various data have shown that some member states haven’t abided by their assigned production level, and small countries such as Ecuador have pushed back, arguing that capping output is hitting their economies.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.