OPEC Wants More Stability In The Oil Market

At the start of this month, the Organization of the Petroleum Exporting Countries (OPEC) shook up the oil market and caused a rise in volatility with its decision to maintain current production levels. The OPEC did not pass up on the opportunity, however, to state that it is campaigning for more stability in the oil market.

In the report that the OPEC published about the matter, the group that counts 12 members tried to justify its position to maintain the oil production level at 30 million barrels per day. The OPEC repeated its prediction that current reserves will drop as global economic recovery continuous and the demand for oil rises.

The fundamentals of the oil market imply that reserves in the market are most likely going to go down, according to the OPEC. The decision of the OPEC was seen mainly as a continuation of its strategy to put pressure on US shale oil producers, however.

Current Oil Prices

Saudi Arabia already mentioned it is happy with current oil prices, although not all members of the OPEC feel the same way. Members like Venezuela and Iran suggested to limit production. Despite the decision of the OPEC, the organization underlined that it is devoted to stability in the market.

It should be recognized that market stability is an important common goal for all market participants. This goal is achievable through mutual effort, according to the OPEC.