OPEC nations discuss further production cuts to push up oil price

File picture: Jacob Ford/Odessa American via AP.

VIENNA – The countries that make up the OPEC oil-producing cartel were due to meet on Thursday to decide whether to cut production even further in order to support the price of fuel and energy around the world.

The group is expected to prolong production cuts they’ve agreed on for the past three years, and some experts believe they could deepen them to support prices. The price of crude has been capped in recent years by a resurgence in supplies from countries outside OPEC, particularly the United States.

They’re negotiating through a tangle of tensions driving members in competing directions.

Saudi Aramco’s stock market debut, which will get off the ground Thursday when the state-run oil giant prices its shares, has put Saudi Arabia in a precarious position as it bets on what volume of oil production will hit a sweet spot for prices, with the added pressure of considering the interests of its shareholders. The nation is already bearing the burden of the largest share of OPEC’s production cuts.

But some nations such as Iraq have been ignoring the agreement and producing more than their allotted amount.

Source: iol.co.za