Non-OPEC oil producers to cut output 558,000 barrels a day

I would say that I am surprised they got this far, but I am not. They had to reach some agreement sooner or later. Now they have to enforce it. I think in 2014 when prices first started falling, I had predicted that low prices would continue through the end of 2016. Later I said end of 2017, so it looks about right. Prices will inch up slowly, there is a stated ceiling of 60 dollars/bbl by OPEC. And then you have downward pressure from the huge stocks that have built up and then from frackers and from cheaters.

Anytime ... well... let's say AS SOON AS you get an agreement like this, everyone has an incentive to cheat. It is hard to track exports in the first place, and many producers probably inflated their production figures just so that they can carry on shipments without cutting anything at all.

Then you factor in fuel efficiency of cars in general, economies switching to natural gas, and the likely continued glut of cheap coal, and one wonders where higher oil prices are going to come from.

And that is really the scary part. I don't know when it is going to happen, but we are going to go from more or less 60 dollar oil to about 120 dollar oil in a spike.... because oil exploration and investment have dropped too much too fast. Once the stores and the fracking capacity and other reserves start to peter out, we will have another rush to alternative fuels because oil will all of a sudden take off. Gasoline at 170 yen per liter or more, and electricity rates up by 10--15%.

Start looking at hybrid vehicles and solar panels in the next year or so. The numbers might look bad in 2017 and 2018, but you will look like a genius in about 2019 and 2020.

we will have another rush to alternative fuels

As much as I'd like to agree with you, I think Trump will lead a US administration that favors big energy and especially big oil, and as a result we'll see alternative fuels take a back seat. Assuming Trump is in fact chumming up with Russia, and with petroleum being such an important of Russia's economy, it could well be the world sees petroleum become even more important in the next few years.

On a related theme, which country will take control of the Arctic Circle and the resources found there?

The only thing more fraudulent than manipulating supply is the phrase "fossil fuel," which oil is not.

@PTowns I don't rely on people "liking" to agree one bit, so do as you please. I have a hard time understanding how most people on this site form their thoughts because they say things like. "alternative fuels take a back seat." What does that even mean? Have "alternative fuels" ever been in the front seat? And if they were, why would they be called "alternative fuels"? And Trump chummy with Russia? Who cares? If prices go up, people will switch. If prices go down, then hey! Cheap oil. If you just ignore the dumb stuff people like Elon Musk says, anyone could see that alternative energy in most cases has passed grid parity. Economics are driving alternative fuel use now. With prices near 3 year lows now, and "chummy" Trump/Putin/Exxon, I would say the future looks brighter for people if they can think ahead... and not worry about "liking to agree" with everybody else.

@dtom "is the phrase "fossil fuel," which oil is not" Right. I have never seen anyone call oil a fossil fuel, and I don't know why they would. You got me there.

The USA and Canada will make up the losses as new Laws will allow the USA to sell on the open market and allow exporting for the first time since the 1970's The USA and Canada have more oil than OPEC Trumps jobs and America First will make this a joke.

So when people complain about rising prices at the pump, they know who to attribute it to, lol

It's Cartel business. I want to see how elected President Donald Trump replies OPEC action. Some of Oil money will go to Islamic Terrorists around the world. Iran will get more money and Iran Military can produce nuclear weapons under the UN radar. If China, Japan, S. Korea and US they reduce importing Oil from OPEC members nation and then Oil price will drop to under $ 45. Cartel business was banned in trading. Why should US has letting OPEC doing Oil Cartel?