On 4th December an OPEC meeting on dealing with an allowable oil production quota will take place. If quotas are increased the market will face a collapse of quotations.
For now there are no prerequisites to cutting quotas
‘For now there are no prerequisites to cutting quotas. Both Saudi Arabia and Iraq have significantly increased their production this year. Likely supporters of the price growth by means of the quotas cutting (e.g. Venezuela) cannot influence their OPEC opponents’ attitude to the issue,’ said the expert in an interview to ‘Lenta.ru.’
According to Mr Kurdin, the moderate production decline will affect the oil price growth up to $60-70 p/b. If so, American companies will revive and that will cut quotations, and OPEC will lose its positions.