The OPEC and non-OPEC oil production cuts are actually a joke in the bigger scheme of things, the oil markets have been over supplied for a decade. The market's self serving definition of a balanced oil market is complete nonsense on a larger macro view of the market.
There is a reason the 5-year averages for oil stocks have been rising every year that I have been trading the oil market. It isn't a coincidental indicator that more oil storage facilities are being built or expanded every year for the last 15 years of the modern electronic oil markets.
There are so much oil and derivative oil products in storage on a global calculus, that it is a joke if OPEC thinks they have cut enough to actually balance the long term oil markets.
In addition, they are delusional if they think a little six month seasonal pullback in production is going to do anything other than artificially set the oil market up for the next leg back down in the second half of 2017.
