OPEC points to 'letting the market work' prior to press conference
Investing.com | Jun 02, 2016 10:12AM GMT
OPEC seems unlikely to place production cap as market rebalances of its own accordOPEC seems unlikely to place production cap as market rebalances of its own accord
Investing.com – As markets awaited the press conference from Organization of the Petroleum Exporting Countries (OPEC) meeting in Vienna tentatively scheduled for 14:00GMT, or 10:00AM ET, on Thursday, participants from the group’s oil producers seemed unlikely to reach a deal on an output cap and were leaning towards allowing the market to rebalance itself.
Saudi Arabia’s new oil minister Khalid al-Falih, the world’s largest exporter, suggested that the market was rebalancing and that oil prices will respond to that.
Al-Falih indicated that the market was not currently over-supplied, although he admitted that there were inventories that needed to be absorbed.
“Whatever action we take will be taking into consideration that the market is doing quite well by itself, so we will be very gentle in our approach,” al-Falih declared.
Some energy ministers hinted at the reintroduction of a production ceiling, though an agreement seemed unlikely.