No Signs OPEC Production Cut Is Close at Hand

An OPEC production cut does not appear close at hand, but the cartel is seemingly eager to participate in an effort to bring up oil prices.

OPEC Secretary General Abdalla Salem El-Badri told CNBC on Monday that oil producers are still “feeling the water” over a possible deal to freeze production, and it is “wait and see” as to whether it leads to any other type of deal. Non-OPEC Russia and Saudi Arabia agreed with Venezuela and Qatar to cut production, if other producers join in.

USD/CAD – Loonie Higher on Rebounding Energy Prices

El-Badri made the comment as he left a panel discussion he was participating in at the IHS CERAWeek energy conference in Houston. To the gathering he said, “Let’s freeze production and if successful, take other steps in the future.” El-Badri said the proposed freeze should be evaluated after three to four months to see if it succeeds.

CNBC

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.