Announcement of slump in oil prices has shaken the oil trade market. Reports suggest, the drastic slide of more than 1% in oil prices which was made public on Thursday last week have stupefied US inventories and OPEC officials gravely. The OPEC group members were left pondering over extension of their production cuts beyond June.
In order to keep market stakes in close harmony, the current consensus requires OPEC+ to keep the cuts in place through the end of this year. If reports are to be believed, the group has kept 1.2 million barrels per day (mb/d) off of the market since the start of this year, and U.S. sanctions have cut down more supply in Venezuela and Iran. Reuters suggest, although no decision has been made yet, nothing is inevitable. OPEC is keeping a close watch on US sanctions and Trump’s administration to decide its final move.
Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental establishment comprising 14 nations. It was founded in 1960 in Baghdad by its first five founding members. OPEC has its headquarters in Vienna, Austria since 1965.