With supply from OPEC running nearly 2 million barrels per day above a self-imposed production ceiling of 30 million barrels per day, OPEC appears poised to rein in production and send crude prices back upward, according to a Reuters report.
“It’s very clear there is a tremendous surplus that has led to this severe decline in prices in a very short time span,” Abdul Kareem Luaibi, Iraq’s oil minister, told reporters Monday, according to Reuters. “This will not serve anyone.”
While Luaibi declined to specify what action if any the cartel might take at its meeting Thursday, Mackey writes, he said maintaining the price at $100-$120 a barrel was “reasonable and acceptable.”
Brent prices have already sunk below $100 several times this month.
Saudi Arabia already appears to be cutting back: an industry source told Mackey the kingdom pumped 9.8 million bpd of crude oil in May, compared to more than 10 million bpd earlier this year.
Don’t Miss: 15 Countries Sitting On Gigantic Oceans Of Oil >
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.