Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC member will gathered in Vienna, Switzerland starting tomorrow (Dec 6). The decision from this meeting is crucial for the oil and gas market.
Some countries, like Iran has pushed the organization to cut the group production of around 1.4 million barrels oil per day (BOPD). OPEC needs a unanimous vote to pass the decisions.
If failure, said Iran’ OPEC Governor Hossein Kazempour Ardebilione, would send oil prices plunging to US$40 a barrel. Saudi Arabia’s minister Khalid al-Falih even said that OPEC+ needs to figure out what the group to be done and by how much volume.
Oil prices have plunged by around 30% from early October as the market started to fear an oversupply is building up again, due to record high production in Saudi Arabia and Russia, and an all-time high oil output in the United States, coupled with fears of slowing economic and oil demand growth.
President Donald Trump administration are eager to tighten the screws on Iran, as the country was in the midst of preparing to issue waivers for eight countries importing oil from Iran. The result could be much more Iranian supply knocked offline. Nymex’s crude oil prices declined 1.48% to US$52.46 today.