Baku, Azerbaijan, June 2
By Aygun Badalova - Trend:
OPEC will refrain from any initiatives that would drive the oil market higher, Ole Hansen, Head of Commodity Strategy at Saxo bank believes.
OPEC is holding a meeting as of currently in Vienna. The previous meeting regarding the possible oil production freeze did not yield any results.
The talks on oil output freeze collapsed after Saudi Arabia surprised the group by reasserting a demand that Iran also agrees to cap its oil production.
"Opec will try to show unity but at the same time refraining from initiatives that would drive the market higher thereby risking ruining the gradual and longer term sustainable recovery," Hansen told Trend June 2.
"The introduction of a production limit will not have a fundamental impact but could still be short term bullish considering the recent failures," he added.