Today is an important day for investors who are interested in the oil market, as OPEC is having their much anticipated meeting in Vienna. It is expected that petroleum-exporting countries will agree to continue with their policy of reduced oil extraction and exports to allow the market to stabilize in 2018.
The growth of oil prices recently was almost at a pause as investors revised their expectations and prepared for this meeting. The initial agreement that OPEC members signed lasts until March 2018, but analysts have warned that this may not be enough to stabilize the oil market, which could easily plunge into oversupply once again, considering the United States has only been increasing its oil production this whole time, contrary to what OPEC has been doing.
There was indication from Saudi Arabia that they are willing to continue the agreement until the end of 2018, a view that was also confirmed by Iraq, Iran, and a few other OPEC members. Nevertheless, Russia, who is not in OPEC but has been enacting their agreement of its own accord, has been wary of these measures, afraid that reducing supply by so much for so long will actually harm the market. Still, Russia has somewhat different concerns from most OPEC members, as its oil business could survive even under lower prices than what OPEC hopes to see.
