OPEC Expected to Decrease Output
OPEC is expected to put the brakes on excess production at its Thursday meeting in Vienna. The United Arab Emirates oil minister, Obaid bin Saif al-Nasseri, said that the issue of compliance needs to be tackled first and if production needs to be cut then it shall be cut.
Currently the cartel is producing approximately 1.5 million barrels a day more than the self-imposed quota of 24.5 million bpd set in January. Most of the additional output is being produced in Saudi Arabia. However, Saudi Arabia has said it is beginning to scale back production to keep prices level. Ali Naimi, Saudi Arabia's oil minister said on Wednesday: "This meeting is to make sure we keep the market where it is, to make sure prices stay in the $22 -$28 range, preferably right in the middle."