Preview: OPEC holds Meeting in Vienna
- OPEC members have been stressing unity and cooperation in comments leading up to today's meeting. The organization has had governance or enforcement challenges to it current 30M bps quota- OPEC share of the world oil production has fallen with the rise of non
-OPEC sources, like Russia, Norway, the UK, Canada, and significantly in recent years, increasingly the US
- Some reports this week have said that OPEC will not announce a production cut but could agree to more strictly enforce the cartel's 30M bpd production ceiling, which if adhered to could take about 300K bpd of overproduction out of the market
***Insight: OPEC implemented a cumulative total of 4.2M barrels of cuts (Comprised of 1.5M bbl/day from Oct 24th 2008, 500K cut in Sept 2008 and 2.2M on Dec 17th 2008)
***Reminder: OPEC's last production cut took place on Dec 18th, 2008, when the cartel cut production by 2.2M bpd to total output of 24.845M bpd. This was OPEC's largest production cut in its history.