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.
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.