Baku, Azerbaijan, May 31
By Aygun Badalova - Trend:
The upcoming OPEC meeting is a good case for renewing the current policy of the cartel, reports International Oil Daily (IOD).
Meanwhile, multiple OPEC delegates told IOD that an effective decision in this case would be to take no action for another six months.
"No action needs to be taken," said one delegate, cautioning that this view had been formed just from interpreting the data.
The meeting of OPEC members will be held June 2 in Vienna. Analysts along with OPEC member countries' top officials say there will be no unexpected results of the gathering.
There is no specific proposal on production on the meeting's agenda, said Falah al-Amri, Iraq's OPEC envoy. That was echoed by several OPEC representatives who met in Vienna ahead of the gathering, the Wall Street Journal reported.
One of the most important issues in the June 2 Ministerial OPEC Conference is the appointment of a new OPEC Secretary General that will certainly enhance the performance of OPEC Secretariat.
Iran's position will also be a key for determining cartel's further policy.
Earlier the Islamic Republic has defied calls from other oil producers to hold its output at the January levels. The country has boosted crude output at the expense of the prices.
Charles Ellinas, oil market expert, executive president at Cyprus National Hydrocarbons Company (CNHC) told Trend previously that Iran will not agree to a production freeze but may give indications that the country is prepared to do so by the next meeting.
The country has not quite reached its targeted oil production and export level, according to Ellinas. "They need to increase exports by another 400,000 barrels per day," he said.
Last week oil prices rose above $50 a barrel. However, despite the relatively positive trend, analysts do not expect significant growth in prices this year.
Analysts of the American bank JP Morgan forecast the average price of $45.3 for a barrel of Brent oil and $44.66 for a barrel of WTI oil in 2016.
Analysts at the British consulting company Capital Economics forecast the price of $45 per barrel for Brent and WTI oil for late 2016.
According to the forecasts of the US bank Citigroup, the average price for a barrel of Brent oil will be $50 in the third quarter of 2016. The Citigroup analysts forecast the average price of $65 for a barrel of Brent oil for late 2017.