Global Markets

OPEC output cap: new alliances, fresh strategies

The chances of OPEC capping oil production in November remain low as some of its member countries have not agreed to freeze their output The chances of OPEC capping oil production in November remain low as some of its member countries have not agreed to freeze their output.
By Abhishek Kumar 3 October 2016 0 24423

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...