Oil ETFs were mixed on Thursday as the Organization of the Petroleum Exporting Countries (OPEC) is set to hold its biannual meeting of oil ministers in Vienna on Friday to mull over oil production–a move that could send oil prices lower if OPEC agrees with Saudi Arabia’s hints at pumping more oil.
Saudi Arabia oil minister Khalid al-Falih said Thursday that OPEC and non-OPEC partners should consider 1 million barrels a day as the ideal production goal. Saudi Arabia’s statement for more oil conflates with Russia’s statements that 1.5 million barrels a day is their target despite pleas for less production by other OPEC members.
”Saudi Arabia is really talking up a big production boost,” said Phil Flynn at Price Futures in Chicago. “But the perception is that a potential increase in supply from OPEC will help Europe and Asia, whose markets have been tight, much more than the U.S.”