Directional impact on forecast:
Bullish for oil prices in short term
OPEC’s members have reached an understanding to marginally reduce the cartel’s oil production from its current level, but the market is still not convinced they will cap their output.
OPEC’s so-called ‘extraordinary meeting’, which took place in Algeria in September, has set the scene for its next twice-yearly meeting, scheduled for November. However, the road to an agreement on a production cap will be a thorny one.
The meeting proposed an overall production target of...