Oil prices have stayed flat ahead of an Organization of Petroleum Producing Countries (OPEC) meeting taking place in Vienna today (June 2).
Since Iran’s return to the oil market, the country has been eager to keep selling oil despite the fact that oil-producing nations normally cut production in order to bolster prices at times when there is an oversupply of oil. This helps companies like Shell, which produces Shell Tonna S3 M 68, to keep on top of matters. However, the lack of movement between Iran and Saudi Arabia has caused prices to remain constant.
This morning, Brent crude oil was trading a tad under $50 per barrel, which is more than 50% less than it was fetching at the same time in 2015, and despite the fact that it briefly peaked at over the $50 mark for a short time in the previous week.
OPEC, which consists of 13 oil-producing nations, has cut production to increase oil prices in the past and sources have commented that it is likely to consider another curb on prices at the latest meeting.
A senior source in the organization told Sky News:
“The Gulf Cooperation Council is looking for coordinated action at the meeting.”
This was referring to a group bringing together Saudi Arabia – the biggest OPEC oil producer – with its allies in the Gulf, including Kuwait and Qatar.
However, this will not be an easy move to pull off due to the fact that Iran, which had sanctions lifted against it in January, has so far increased production significantly and shows no signs of bowing to the wishes of OPEC by cutting its supply.