Crude prices have seen a reasonable bounce in the last few days with US light sweet crude increasing by just over $3.00, while Brent prices are back testing $80.00 a barrel. The highly anticipated OPEC meeting on November 27 is clearly the big driver for prices in the short-term and there seems to be a growing view that production is likely to be cut. This view has really stemmed from the Libyans, who have suggested cutting OPEC's production target by 500,000 barrels a day. Given OPEC's current production is currently running at 30.97 million barrels a day, a cut of 500,000 barrels would still in theory see production running above the organisation's current target of 30 million barrels a day. In this article I look at moves in crude based on expectations around OPEC quotas - (VIEW LINK)
Please sign in to comment on this wire.