Opec members and other major oil producers will meet in Vienna this week to discuss oil production cuts, but US shale could complicate matters
Members of Organization of the Petroleum Exporting Countries (Opec) and other major oil producers will meet in Vienna later this week to discuss production cuts. Predictably, oil prices have gained in recent days. In November 2016, the oil cartel decided to cut production by 1.2 million barrels per day and was supported by other oil producers, including Russia, which decided to trim production by 600,000 barrels per day.
Most analysts expect that the production cuts will be extended, but it would be interesting to see if these producers are willing to do more to drain the global stockpile. According to the International Energy Agency, at the current level of production, the stockpile may not go down to the desired level by the end of 2017. Rising US shale output would further complicate matters for Opec. With deeper cuts in production, it is possible that Opec would lose market share without being able to influence the price as desired.
India benefits from lower oil prices as it helps contain inflation and current account deficit.
Editor's Picks »
- Improving power procurement practices
- The world according to Donald Trump and Xi Jinping
- Yogi Adityanath leads BJP offensive against Shiv Sena in Palghar
- The one-child policy had limited impact on growth
- RBSE 12 result 2018: Science, Commerce results declared at rajresults.nic.in, rajeduboard.rajasthan.gov.in
- Same-store sales growth trips at Future Retail
- Cipla Q4 FY18 results no reason to reverse stock underperformance
- Dr Reddy’s Q4: It’s a wait and watch, share price spike notwithstanding
- What SBI Q4 results say about the Indian economy and the bank
- Patanjali’s slowing growth does not mean that Colgate’s is accelerating