MADRID | By Ana López-Varela | “The OPEC will not cut production even if the oil barrel drops to $20.” The intentions of the Saudi Oil Minister, Ali al Naimi, are stark. But, how will the OPEC’s decision of maintaining the production quota at 30 million barrel per day affect the markets? And which are the forecasts that market watchers have regarding the oil? In general, they expect the prices to increase. However, futures traders remain more conservative.
MADRID | The Corner | “It’s not in the interest of OPEC producers to cut their production, whatever the price is… Whether it goes down to $20, $40, $50,$60, it is irrelevant, ” Saudi Arabia’s oil minister Ali al Naimi said in an interview with Middle East Economic Survey, quoted by Reuters. He sent oil prices tumbling below $60 per barrel. The oil crisis is causing violent and undesirable market volatility.
MADRID | The Corner | Oil prices continue to fall ahead of the much-awaited OPEC meeting today, which will start at 9:00GMT –a press conference will be held at 15:00GMT. Brent crude and WTI both fell to four-year lows on concerns that oil producers will not make the large supply cuts needed to contain the slide. Analysts at Barclays believe that with an absence of basing signals for WTI crude, the risk remains lower towards 70.76. Will the oil cartel react?