Trading in positive territory since the beginning of December and following a drop of 22% in November, oil prices appear on the verge of a comeback, as OPEC’s meeting in Vienna kicks off. The market expects an output cut of 1 million barrels/day (current production: 33.13 million bpd). However, the Russian Energy Minister noted that there are diverging opinions: current oil prices are comfortable for Russia (lower oil prices mitigate the impact of a weaker rouble). This poses the question: will OPEC compensate for Russia’s lack of cuts? Saudi Arabia has made clear it won’t carry the cuts on its own. Both Brent crude and West Texas Intermediate prices dropped 1% in morning session, trading at USD 60.92 and USD 52.34 per barrel.
By Vincent Mivelaz