OPEC to debate cuts but market share still an issue23 November 2016
The chances of a meaningful production cut being agreed at OPEC’s meeting in Vienna next week look remote at best. The 14-member cartel will debate a proposal for a 4.0-4.5% production cut, and it may even reach an agreement to that effect that it could invite non-OPEC member Russia to join. But this will not lead to a resumption of production quotas for members. More likely it will be framed as a general statement that the oil market is on course to stabilise, and that OPEC members will act together to speed the process.
On the campaign trail, US President-elect Donald Trump spoke controversially about banning imports of Middle Eastern oil as part of his bid to make the US energy independent. Since his victory in the election, he has said on Twitter that he will boost shale oil and coal production by removing federal regulations on energy companies. To date, he has not repeated the campaign rhetoric that promised to ban Muslims from entering the US.
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