Is the crude output agreement falling apart?

Notwithstanding the cautious optimism expressed by many observers over global growth, crude oil – the universal intermediate – has been under pressure in recent times due to a combination of factors, including the stronger dollar and the ongoing trade war between the US and China.

Brent crude has been hovering around $60 a barrel, supported by financial investors, and to an extent, disruption in Venezuelan oil supplies. However, there is now an increasing belief that the discipline among producers, who had agreed to an output cut, is becoming tenuous. There is reason to believe that many producers have begun to raise output.