For those of you who don’t know, OPEC is going to conduct an unofficial summit today, on September 28th. Despite multiple rumors and assumptions, they decided to not invite Russia to the summit. This information was confirmed yesterday by the Secretary General of OPEC, who said that this summit in Algeria is for OPEC members only.
It is interesting to note that OPEC doesn’t deny the possibility of adopting new members to the cartel. The Secretary General reminded that OPEC had recently adopted Gabon and Nigeria. Now, OPEC contains 14 members. The cartel seems to be interested in considering new applications if there are interested parties.
At the same time, Market Leader reminds you that Algeria is hosting the International Energy Forum, which started on September 26th and is going to end today. Within the scope of this energy forum OPEC members are going to conduct the mentioned unofficial summit to address the most urgent issues on the agenda.
Apparently, the participants are planning to discuss the ways and means to stabilize oil prices and make them grow over time to improve their financial well-being. Some experts say that they may well return to the question of freezing their oil production to curb the increasing oversupply in the international market of crude oil.
To be more specific, the representative of the United Arab Emirates says that they back the idea of freezing the production at the current levels without having to cut it. Iraq is another OPEC member advocating this idea. At the same time, the representative of Venezuela warns everyone that if OPEC fails to agree on freezing the production of crude oil this time, oil prices may well crash all the way down to $20/b in the near future. Venezuela keeps on trying to talk Iran and Saudi Arabia to make concessions and agree to this step to a void a price catastrophe in the global oil market.
Masterforex-V Academy experts remind us that oil prices resumed their downtrend after the Iranian Minister of Oil said that he had come to the summit in order to consult and exchange opinions rather than reaching agreements and making concessions.
Amid this statement, ICE Brent oil futures for November delivery dropped in price by 2% down to $46/b. At the same time, ICE Brent oil futures for December delivery quickly dived below $47/b. The spot price of Brent oil dropped down to $48/b.
