After touching $75 a barrel, Brent has been hovering in the $72-74 range since the beginning of this week. Geopolitical conflicts in Iran and war of words between Washington and Tehran is certainly seen impacting the market in addition to statements made by important OPEC members such as Saudi Arabia.
The big question is whether the OPEC+ production cut agreement will be extended or whether oil production will be raised. A consensus seems to be eluding producers; but they are keen that prices do not crash because of their decision.
The OPEC+ meeting, scheduled for end-June in Vienna, may prove to be crucial.
To cut or not to cut…
Several scenarios are possible. Extend output cut agreement or abandon it or reduce the quantum of output cut from 1.2 million barrels a day to say 800,000 or 900,000 barrels a day. Read more