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Oil price hovers at 80 USD/bbl level ahead of Thursday's OPEC meeting – KBC

FXStreet (Barcelona) - With the production cut rumours going around, and Oil hovering around $80/bbl ahead of the meeting, the KBC Bank Research Team anticipates OPEC to not agree on any production cuts.

Key Quotes

“The oil price hovers at 80 USD/bbl level ahead of Thursday’s OPEC meeting. Several comments regarding possible production cuts have emerged over past few days but none of them pointed either to a broader agreement among OPEC members on cutting oil production or to a participation of other non-OPEC producers on lowering global oil supply.”

“Russia’s energy minister Novak denied previous (anonymous) comments that the country could cut its oil production by about 300 thousand barrels per day (kbpd) and said that Russia has already contributed to stable oil markets by keeping its oil output steady.”

“Meanwhile, anonymous OPEC sources said that if the cartel decided to cut oil production quota that Libya, Iraq and Iran may not participate since their production is seen well below historical levels (and potential levels).”

“Finally, comments of Saudi oil minister Naimi, who said that it wouldn’t be the first time if the market was oversupplied suggest, that the key OPEC players probably still maintain their view.”

“To sum up, we still do not expect that the OPEC will agree on any production quota cuts on Thursday.”

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