Saudi Arabia, which is considered the informal OPEC leader, announced its readiness to back oil production cuts in case other OPEC members like Iran and Iraq as well as non-OPEC members like Kazakhstan, Mexico, Oman and Russia do the same.
It should be noted that, Saudi Arabia used to be ignoring the calls for backing productions cuts coming from other oil exporters suffering major losses from ultra-low oil prices. During the meeting between the governments of Saudi Arabia and Russia, the question of oil production cuts wasn’t found on the agenda.
In order for OPEC to cut its oil production, the involvement of all non-OPEC members is required as well, some OPEC representatives say. According to Energy Intelligence, Saudi Arabia is expected to offer a production cut by 1 million barrels a day, which is slightly over 1% of the world’s total oil production. OPEC accounts for 40% of it.
The cartel’s official quota of 30 million barrels a day has already been exceeded for 18 months in a row, according to Bloomberg. For instance, OPEC’s oil production was over 32 million barrels a day on average last month.
Still, even if there is any compromise, OPEC is definitely not going to make changes this time. Should any production cut take place, this is going to happen in 2016. At least this is what OPEC gave to understand during the latest OPEC summit that took place over the weekend.
In the meantime, the SRP Department of Masterforex-V Academy reports that Brent oil is moving within he scope of wave C, which belongs to an ABC pattern of wave level H4. The price has passed the target located at $43.8/b. There is a smaller-scale ABC pattern inside the mentioned one. The closest target is $41.43/b, the experts report.
