Oil prices recover ahead of OPEC – ABN AMRO
|Hans van Cleef, senior energy economist at ABN AMRO, points out that the oil prices have recovered on Monday following the truce in the US-China trade conflict that was reached in Buenos Aires and also as both Saudi Arabia and Russia confirmed their cooperation in stabilising oil markets.
Key Quotes
“This was a clear signal ahead of the upcoming OPEC meeting in Vienna this Thursday. Market expectations are mixed and divided between a) no change in production levels by OPEC and its partners (mainly Russia) or b) a fresh cut of crude production between 1 and 1.5 mb/d. It seems a huge dilemma for especially Saudi Arabia. That country has to choose between market stability in supply and demand (and thus lower oil production to support prices) or the result of such a production cut (higher prices) which would mean support for US shale producers benefitting from these higher prices.”
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