Oil futures remained solid in Friday’s opening session as the market is currently anticipating the decision of OPEC and other producers on whether they would extend or deepen the production cuts until March 2018.
The Organization of the Petroleum and Exporting Countries (OPEC) along with other producers, including Russia, are scheduled to meet in Vienna this day at 0800 GMT. This is to talk about extending and possibly deepening the output reduction in an effort to curb the bloated market and support prices. OPEC members Libya and Nigeria taking part on the future cuts have also been the center of attention, considering the two nations were exempted from previous cuts.
ANZ noted on Friday that the market is still divided on whether the meet of oil producers will introduce new cuts on the table. They added that it needs a strong indication on lower supply to make prices stay in the positive territory while the inventories in the United States are still up.
Looking on futures, U.S. West Texas Intermediate (WTI) crude prices edged up by 0.14 percent or 7cents to finish trading at $50.62 a barrel and global benchmark for oil prices Brent crude futures were marginally down by 0.05 percent or 3 cents down to settle at $56.40 a barrel.
Club OPEC and other producers agreed last November 2016 to reduce supply more than 1.8 million barrels per day (bpd) to prop up prices. However, despite their attempts, the oil carted still extended their output reduction beyond March 2018, which didn’t do well with prices.