By: Economic & Finance Report
Opec may soon be curbing oil prices, after releasing extensive amounts of oil for the past two years, without limitations. Opec is negotiating with Iran other body members about placing a cap on production, and perhaps reducing production to what it was in the first quarter of 2016.
Saudi Arabia and Opec members have been pumping out almost 34 million barrels a day, this has led US output to increase 11% from previous. Opec is assumed to take some type of action before the end of the year, exactly what transitioning may take place; no description has been presented yet to the media.
There is some speculation that the Saudi led Opec will take on some reduction of the output, maybe before the end of the year. It makes no sense to have increased oil output, when the Saudi’s have already retained the market share, the so called “oil war crusade” with the western oil companies and distributors should be neutralized. -SB