OPEC to debate cuts but market share still an issue

By Peter Stewart 23 November 2016
  • Twitter logo
  • LinkedIn logo
  • facebook logo
  • Email logo
Supporters of US President-elect Donald Trump applauding his pro-fossil-fuel stance at a campaign rally earlier this year. (PA) Supporters of US President-elect Donald Trump applauding his pro-fossil-fuel stance at a campaign rally earlier this year. (PA)

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.

Log in or register for a free trial to continue reading this article

Already a subscriber?

If you already have a subscription, sign in to continue reading this article.

Sign in

Not a subscriber?

To access our premium content, you or your organisation must have a paid subscription. Sign up for free trial access to demo this service. Alternatively, please call +44 (0)20 3004 6203 and one of our representatives would be happy to walk you through the service.

Sign up