Oil markets are inching back into balance. Prices have edged above $50/B thanks to Opec’s proposed production cuts. But the jury is still out on the likelihood of serious Opec action to hasten rebalancing, let alone provide the further boost to prices many members are calling for. Kingpin Saudi Arabia has made it clear that it is acting to prevent prices from increasing too fast with its officials making statements seemingly aimed at dampening any short-term price gains.
Opec Secretary General Mohammad Barkindo spoke confidently about the impact of the group’s planned production cut and the probability of reciprocal action from non-Opec producers at the World Energy Congress in Istanbul on 11 October. But considerable questions remain over whether it can be implemented when Opec next meets on 30 November, and indeed whether it will even help rebalance the market. (CONTINUED - 1680 WORDS)