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

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam