Dark cloud above OPEC

Dark cloud above OPEC

World August 8, 2017 07:51

- The oil price drops further on Tuesday. Traders fear that OPEC oil cartel will not be able to move members to production restrictions.

The oil price should go towards $ 65 a barrel at the end of this year. On Tuesday, Brent, the most traded oil in the Middle East and Europe, recorded 0.2% lower at $ 52.30 per barrel.

The price was partly under pressure because Libya resumed its production.

Members of the Organization of the Petroleum Exporting Countries (OPEC) meet for two days, with Thursday closing time to reach new appointments. Sources in OPEC countries against multiple media report that there are too many obstacles to unanimity. Countries such as Ecuador would decline because a restriction on oil supplies would hit their economy too hard.

In January, OPEC reported less to produce oil in order to collectively raise the oil price. The oil supply of these countries has historically never been so great.

Crucial analysts are commenting this week on Saudi Arabia, according to researcher SCI International. If the leader and major producer within OPEC offers more visibility at lower prices, there will still be a round of rounds of major investors in the world's most traded raw materials.

The demand for crude oil is by no means a failure, Citi Futures notes, seeing more orders for the third quarter.

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