Oil: prices faltering
Mihir Kapadia, CEO and Founder, Sun Global Investments
Oil prices are again faltering as there is doubt as to whether OPEC will achieve any significant measures to enforce production caps at their on-going two-day meeting which concludes today.
OPEC officials have said the purpose of the meeting is to discuss ways to improve compliance level to the deal. This was effected in January with the hope of reducing historically high global stockpiles.
Many member states have not abided by their assigned production levels and it is difficult to see how OPEC can enforce production caps.
The best hope for the bulls is if Saudi Arabia makes a deeper commitment to export reductions. WTI is trading flat at around at $49.49 per barrel.