The Organization of the Petroleum Exporting Countries faces a difficult task on Wednesday when the 14 members of the oil-producing group gather to complete a preliminary agreement reached two months ago.
OPEC outlined a
“This is the most difficult OPEC meeting in decades because they are starting from scratch,” said James Williams, energy economist at WTRG Economics. “It is not just an adjustment to current quotas because individual members have not had or needed one for years.” OPEC’s last output cut was announced in December 2008.
Indeed, the difficultly of that undertaking has been apparent in the weeks since the preliminary pact, with various oil producers voicing support for the deal on one day, but then sounding unwilling to cooperate on another. Estimates on the group’s collective output have also shown that OPEC has raised output to record levels, with the International Energy Agency pegging production at 33.83 million barrels a day in October.
“After months of uncertainty and speculation, you would think there will be some clarity about the crude-oil situation just days ahead of Wednesday’s OPEC meeting,” said Fawad Razaqzada, technical analyst at Forex.com, in a Monday note. “Well, you would be wrong. In fact, very wrong.”
But the news agency also