The head of the Organization of Petroleum Exporting Countries (OPEC) has denied the group’s members are playing a game of chicken with oil U.S. producers.
“That’s 100 percent false,” Secretary General Abdalla Salem el-Badri told CNBC when asked whether the group was testing the nerve of the U.S. oil industry, adding that American oil production will likely drop from current projected levels.
“I think the American press is exaggerating this quantity,” he said. “That’s the message I am trying to get across: please be cool, don’t exaggerate the production of tight oil (in North America) because it will decline.”
His comments come as the group prepares to meet to agree a cut in production to stem the slide in oil prices.
OPEC members are due to meet on Thursday, and a number of analysts and strategists told CNBC they expected the group to cut production by up to 1.5 million barrels a day to help re-balance the market and lift oil prices from their four-year lows.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.