Oil prices may stay depressed until summer due to weak seasonal demand even as Saudi Arabia’s strategy of curbing the output growth of rival producers might have started achieving tangible results, OPEC delegates told Reuters.
Delegates from the Organization of the Petroleum Exporting Countries and external experts are meeting at OPEC’s Vienna headquarters this week to discuss the producer group’s long-term strategy. Such meetings do not set output policy.
The talks arise as data from the United States showed a record drop in drilling rigs, prompting oil prices to jump above $50 a barrel on Friday as traders said they saw it as a sign that OPEC’s strategy was taking a toll on the U.S. shale boom.
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.