Vienna, final decision:
May the 25th, and the meeting in Vienna, is crucial date for Oil market. The day when everything is going to be way more clear. Also the day when OPEC will again show that despite all the concerns and all the market fuss it still holds the power over Oil Market;
Presently, the numerous discussions are being led on this subject. Furthermore there are many predictions and different attitudes about the 25th’s outcome.
However, based on the numerous information and data coming straight out from current market events , it is very likely that the Oil cuts are going to prolong. They may even become deeper and that way impact the market forcefully.
Pre-meetings: Wednesday & Thursday
The OPEC’s officials, as well as the representatives of 13 league countries, along with OPEC’s Vienna secretariat held meetings on Wednesday and Thursday. Discussing the market, and agreeing on the forthcoming decisions.
Some OPEC sources are saying that the Meeting of Economic Commission Board will be concluded in Friday (today). Although it should have been finished yesterday.
“We have not agreed on final scenarios…”
There are sources which predict that OPEC’s extension will depend on estimated growth in supply from non-OPEC producers and U.S. oil outputs; but one thing is for sure, OPEC’s power over Oil market is still the strongest.
Even Saudi Arabia and Russia agreed that Further output cuts are desperately needed in order to keep market stabile. The extension will be for sure agreed until March 2018.
The final decision will be the outcome of Thursday, May the 25th when all the OPEC and non-OPEC Oil producers (allies) will together agree on prolonging the cuts in oil production.
Now the Oil prices which are trading at level of $53 a barrel, earned their support from reduced output due to high inventories.
Also the producers which are not the members of OPEC family, and those who are not participating in these cut deals; lowered their production and limited the drilling.
“Today’s meeting is just informative, nothing major…”
Reuters is reporting that by some of the OPEC sources, today’s meeting is only going to be informative. No final agreements will be brought. But it is definitely important for definitive decision which is about to come out on May the 25th.
“Brent crude was up 63 cents at $53.14 per barrel at 0813 GMT. After climbing to $53.20, its highest since April 21… U.S. benchmark crude was up 61 cents at $49.96 a barrel.” (Reuters)