OPEC to meet on 31st
The Organisation of Petroleum Exporting Countries will hold a meeting on Friday to assess oil production for the next 12 months to ensure that it meets matches the demand. Some members of OPEC, including representatives of the United Arab Emirates, have already indicated that they feel the current price and production levels are acceptable. The 12 members of group produce just under half of the world’s total oil.
The energy minister for the UAE, Suhail Mohammed al Mazrouei, said OPEC produce 30.4 million barrels of crude oil a day which is a “little above the organization’s target, and this reflects the demand on its crude”. However, with demand increasing the extra production will cover any spikes, which the group won’t want to miss out of due to the high price per barrel that they are currently receiving.
Al Mazrouei was quick to point out that while demand is increasing steadily at the moment, he anticipates that growth will slow later in the year — impacting the price. Late on Monday Brent crude was trading at $102.40 per barrel in London, while WTI was trading at $93.52 in New York. Brent Crude is widely expected to rise in the run up to the meeting, however volatility could be a major factor once the meeting concludes.