On Friday, there was a sharp fall which was experienced when the rumors came out that OPEC is going to decline the deepening of production cuts however there are new rumors which have come out now.
In the weekend, the oil minister of Iraq had said that the group is indeed going to consider the deepening of production cuts. There is a speculation of an additional cut of close to 400,000 barrels in one day going by the statements of ThamirGhadhban who is the oil minister of Iraq. He said that the figure has undergone discussion and it has been reached between the ministers of OPEC after studying carefully.
Ghadhban has added that there are viewpoints for the OPEC+ for doing more cuts however the cuts are not going to reach the figure of 1.2 million barrels per day. These cuts are going to lead to stability in market as per experts and also maintain the shipment to the consumers.
This assertion comes in the wake of more statements from the ministers of OPEC who have signaled in a large manner their willingness of extending the agreement on production cut which is set to expire in the year 2020 in March however they do not want to deepen it.
The meeting of OPEC happens twice in one year in Vienna have been historically preceded by the rumors which is an effort for the changing of sentiments in the market or applying pressures on political rivals by leaks to news agencies. The meeting which is forthcoming seems to be similar.
There is no clarity over how the seriously the statements from the oil minister are going to be taken.