OPEC maintains status quo

The possibility of an oil freeze does not seem to be a reality, as the OPEC has maintained its status quo in the 169th meeting which was held in Vienna on June 2. 

After the news the Brent is been trading at 49.1, which is down by 1.15 per cent on Thursday.

The OPEC reference basket fell from around $38 per barrel in December 2015 to a low of just over $22 per barrel in mid-January 2016, before a steady climb saw the price rise above $40 per barrel by the end of April, which then climbed further in May.

World oil demand this year remains healthy, with growth of over 1.2 million barrels per day.  The majority of this will come from non-OECD countries, but OECD countries are also expected to see some growth in every quarter this year.

From the supply perspective, in the first half of this year, the oil exporting companies have seen a further downward revision to the 2016 outlook for non-OPEC supply.  The member nations this year anticipate a contraction of 740,000 barrels per day.  This is more than 2 million barrels per day lower than the growth of 2015.

This trend is mainly from reduced cash flows, investment cutbacks and the deferral or cancellation of projects.
 Nigeria’s Oil Minister, Barkindo, is to be the new secretary general. Next meeting is to be held on June 30.