OPEC is meeting today to finalize the therms of a deal to limit output. An outline was reached in September but negotiations on the details remain ongoing. A Monday report revealed a last ditch effort to bring top oil producers together to support weak oil prices, which triggered short covering.
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OPEC plans to diminish output to a range of 32.5 to 33.0 million barrels per day from its current estimated output of 33.24 million barrels per day. While Saudi Arabia, OPEC’s biggest producer, has agreed to reduce output, Iran, Libya and Nigeria might not follow suit.
“Oil bulls are hoping that OPEC announces a production cut to tamp down on the global oil glut, but as of Tuesday, that prospect is looking less likely,” according to CNBC.
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