for OPEC Meeting
Given the group’s discord, it’s unclear if OPEC+ will sufficiently handle the current complex market situation, which is experiencing a number of fast-moving events, such as lost supply in Venezuela, Libya, and other producer nations.
A clumsy exit strategy, producers cheating on quotas, or a rapid response from U.S. shale producers could undermine the effectiveness of the deal. Conversely, the potential for higher prices is also a stark possibility.
OPEC will attempt to manage perceptions in both the physical and financial markets—but given its track record, it will not likely produce stability and certainty, but instead ambiguity and volatility.
Last week, statements from the oil ministers of Venezuela, Nigeria, and Iran reflected the significant impact of national politics on minister behavior, contributing to the group’s dysfunction.
Before this week's meeting, Matthew M. Reed sheds light on the internal politics driving Saudi Arabia's decision making.
What are the most pressing questions for this week's Vienna OPEC meeting?