An upcoming meeting among major players in the global oil industry may have implications for the Texas oil economy. One year ago, the Organization of Petroleum Exporting Companies, or OPEC, reached a deal to reduce oil production, and on November 30, the organization will meet with Russia to discuss extending the established quota deadline — a decision that may affect oil prices in Texas.
Matt Smith, director of commodity research for ClipperData, says that OPEC agreed to reduce developed nations’ oil inventories by 300 million barrels by March 31. However, he says that several oil ministers including those from Russia and Saudi Arabia, have expressed agreement with those who wish to extend that deadline. If a decision is made at the meeting, oil prices could be thrown into flux.
What you’ll hear in this segment:
-How the two factors currently driving oil demand may be affecting talks to extend OPEC’s production decrease deadline
-How much progress has been made in OPEC’s efforts to reduce oil inventories
-Why there might not be a direct correlation between the meeting’s decision and global oil prices
Written by Rachel Zein.