What will be the price of oil, if production will increase after OPEC meeting?
The upcoming OPEC meeting in June, which is traditionally held in Vienna, capital of Austria, attracts more and more attention the closer to the day. The meeting is scheduled for June 22-23, and the closer to the date, the more you will worry about the commodity market. The focus of attention rather than specific figures, and an understanding of on the participating countries facing the same way and agree with the need to contain production parameters or everything changed.
It is possible that the June OPEC meeting will bring something new to the painting world production of black gold. The results of a Bloomberg survey conducted among analysts and economists suggest that oil producers would vote to increase oil production. The average size of the increase is estimated at 500 thousand barrels per day. Now, remember, OPEC shakes 31,87 million barrels per day in may, production decreased slightly.
Here it is worth Recalling that not so long ago, the United States informally talked with Saudi Arabia and some other countries on the expansion of daily production. It was about about 1 million barrels a day. The Saudis, one of the “engines” of the agreement OPEC+, can influence decision-making in other countries. Russia is ready to increase oil production, this was discussed repeatedly. Against will, apparently, Venezuela, but it develops its own long-term history.
In that case, if the OPEC with the countries outside the cartel, but joined the agreement to reduce daily production and its freezing, the next week will take the decision to increase pumping, oil will decrease in price. At the time of drawdown of the quotes may reach 2-4%. However, the further fate of a barrel in the short term will primarily depend on accompanying comments of OPEC. Categorically what will be the tone of the statements and vague horizons, so much the worse for the black gold.