Anticipation is growing as the upcoming OPEC meeting on May 25th draws closer. OPEC members will be meeting to determine whether they will extend production cuts beyond the originally agreed-upon six months.
Although the output cut didn’t get the results OPEC was looking for, as oil prices barely budged, it is probable that if they start producing back at pump-at-will-policies, another price drop may occur.
The cuts are getting stronger monthly: production stats for March showed that OPEC members cut even more than the amount originally agreed to, with ten of the 21 countries that originally agreed to cut staying in the deal. However non-OPEC members’ cuts are not hitting their targets, coming in only at 66% of their expected cuts.
The industry is expecting the output cut deal to be extended to the second half of the year. Given the extra time, the collective cut of 1.8 million barrels a day may be achieved from all members.
To read the full article by Bloomberg click here.