Oil price: OPEC Meeting+ could derail the market in the area of $ 50
Brent crude remains under pressure after yesterday’s drawdown. By the end of the day the quotations managed to rise back above 60, but in early deals on Friday, prices fell again under the psychological mark in nervous anticipation of negotiations OPEC+.
Yesterday’s OPEC meeting did not produce concrete results. Countries failed to agree on the specifics without their independent colleagues. In other words, the exporters decided to ascertain the position of Russia, before making figures that can knock the market off.
Traders are skeptical. Especially after yesterday the Saudis said that the group may not reach consensus, and if they achieve production cuts will be around 1 million barrels a day, and this is the minimum market expectations.
So in the short perspective all the attention will be aimed at Russia. If Moscow will remain faithful to his previous position and agree to cut back production of not more than 150 TSC barrels, it will be a disappointment for players who expect the reduction to be 1.3-1.4 million barrels per day. Also interesting is the issue with exceptions that are dealt to Venezuela, Iran and Libya.
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