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Oil prices over the next few months are likely to be heavily influenced by just how much and how fast OPEC actually cuts production. In recent days there has been a flurry of reports designed to convince the world that this time OPEC will act in concert and that their oil production will go down. On Sunday OPEC President and Algerian Energy Minister Khelil said that the cartel would like to see oil stable at between $70 and $90 a barrel and that the Saudis were the key to achieving this goal. Last week’s average price received by OPEC dropped to $57 a barrel.
In recent days there have been reports from Kuwait, the UAE, Iran, Nigeria, and Venezuela all announcing production cuts in line with the current production agreement. On Wednesday the CEO of Gazprom told Moscow television that OPEC is already discussing a further 10 percent production cut if prices do not start increasing soon.