A landmark decision on the decline in world oil production is expected this Thursday at the OPEC meeting in Vienna. while representatives of producing countries are yet to strike a balance on the modalities.
The majority, led by Saudi Arabia, are ready to cut back in order to parallel the drop in oil prices.
However, the main agenda this time is to decide on the OPEC oil output policy, whether the existing output cuts should be extended well beyond 2019, as they seek to stem the latest oil price declines.
It will be necessary to find the magic formula that will seduce a volatile market in which prices have fallen by 30% in two months.As a result, the price per barrel is now around 60 dollars a barrel of Brent – the European benchmark.
A contrary result would trigger a frenzy of sales in exponential proportions and would guarantee the return to a global overabundance of oil.
Opec stands still by the stagnation of prices following its decision to open the market at the end of 2014.Prices had plunged to $45 a barrel by January 2015, weakening the petromonarchy economy. @philemonmbale