InvestorQ : Will the OPEC now cut oil supplies to support prices or will the decision be put off?
Neelam Naik made post

Will the OPEC now cut oil supplies to support prices or will the decision be put off?

Answer
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Priyanka N answered.
6 months ago


The answer to your question could depend to a large extent on Russian support to OPEC. Of course, all eyes will be on the OPEC meeting at Vienna in the latter part of the week. The meeting assumes importance due to the sharp fall in crude oil prices. Brent Crude has fallen from $69/bbl to $50/bbl in a span of last 3 months as fears of a global slowdown and the Chinese Coronavirus have taken its toll on the price of crude. OPEC has been waiting for Russia’s confirmation on deeper supply cuts but the Russian Oil Minister has been largely non-committal. OPEC has now reiterated that it may go ahead with much deeper supply cuts in this meeting, even if Russia chooses to stay out. However, that could be easier said than done as any failure to prop up prices post supply cuts could undermine the position of OPEC among its members.