OPEC meeting in Vienna today - probably an increase in the oil price

25.05.2017 / 08:40

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OPEC organizes a meeting today in Austria and will seek to reach an agreement from all members on the extension of the production quota that has been in force since January 2017. Markets are expecting a further 6 months extension to normalize oil reserves. Some analysts believe that this extra time will no be good enough to achieve its goal. Iran and Iraq also agreed to participate and support the new agreement.

On the other hand US Shell petroleum producers continue to produce in full power without any limitations which works contrary to what the organization is trying to do.

Oil price rose during the Asian session today awaiting the meeting and reaching $51.90/barrel. The price managed to overcome the resistance at $51.50 and traded above it. It is likely to see higher levels and volatility during the meeting.

Chart source: Bloomberg Pro Terminal

Senan Fuchedzhiev - Trader

Varchev Traders

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OPEC meeting in Vienna today - probably an increase in the oil price

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