The indecisiveness of OPEC continues to put pressure on oil

OPEC members today agreed to move to cut oil production, but the Cartel failed to specify how many barrels this future reduction in yield would be. Today's meeting ended with this "disappointment," which was accepted by market participants and prices of crude US oil and lighter European BRENT reacted with declines.

BRENT Oil Daily

The organization gathered in its headquarters in Vienna, Austria with the aim of reaching a consensus on the levels of oil extraction by member states and their allies. Tomorrow, the organization will hold a discussion with both Russia and other OPEC allies.

The expected meeting is held at a time when the oil market is close to its bottom after its most severe decline since 2008. Prices have collapsed by more than 30% over the past two months, exposing the economies of the highly dependent black metal exporting countries.

Today, a decision has been made in principle that the yield should be reduced, but OPEC is slowing down its decision as to how much this reduction will be, until the meeting in question with Russia on Friday. Saudi Arabia earlier confirmed earlier today that they can cut production by half that of the market.

Long ago, Saudi Arabia has hinted that it is necessary to reduce yields due to rising supply and the fears of a slowdown in the world economy, which may reduce demand. Prior to the meeting, the expectations were that agreement would be reached to reduce the yield by about 1-1.4 million barrels per day. Of course, the hard part here is not from the Energy Alliance to stop on a number, but how to distribute it among countries. Russia is strongly opposed to OPEC's pressure to agree on possible reductions in yields.

On Wednesday, however, Donald Trump reappeared on social networks, complicating the situation further.

Trump renews his call to OPEC to keep current yields because "the world would not want to see or need higher oil prices." The US president is a public supporter of the low prices of "black gold" and continues to encourage Saudi Arabia to keep the futures low.

Referring to Saudi Arabia, she appeared on the oil scene with a hurt reputation after revelations that the Kingdom's agents killed the Washington Post journalist Jamal Khashoggi in October. Nevertheless, Trump is behind the Kingdom as a loyal ally and has made clear he wants oil prices to keep low.

Source: CNBC

Read more:

• Oil fundamental and inertia can push prices to new highs
• Goldman Sachs: “Gold is a better hedge than oil in current market conditions”
• Golden years for Gold
• The end-of-year gold rally continues at full speed
• Gold goes over $ 1,500, big players with estimates for the next year