The oil market is currently being weighed down by weak global financial markets which saw stock markets tumble, and the seemingly everlasting wait for OPEC to meet and decide what they are going to do.
The oil-rich nations must be looking at predictions of the market falling to lows of $30 through gritted teeth. They really rely on oil for so much of their economy, and anything below $70 starts to make things very difficult.
For them, however, it’s the classic oil producing conundrum – do we cut production and accept a smaller market share, or do we protect our market share but risk dwindling prices?
Oil output from the world’s biggest producers – OPEC, Russia and the United States – has increased by 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting almost 60 percent of global consumption.