The Wall Street Journal cites an official who says members may agree to follow current quotas more closely rather than cutting quotas.
The problem with OPEC is that no one follows their quotas so production cuts are a fantasy.
Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, is likely to side with calls for the group to adhere more closely to its self-imposed production ceiling at Thursday’s meeting of OPEC oil ministers, according to a Gulf official familiar with the Saudi position.
Support for such a move, which would be based on tighter compliance with OPEC’s existing output limit as opposed to an outright cut to its production target, was coalescing last week at a meeting of OPEC advisers, according to several of those present.
The article is slightly bullish for crude, although it does emphasize that OPEC won’t announce a production cut on Thursday.
Here’s an oil cartoon from 1998 — those were the days!
Oil fell as low as $10.35 in 1998 — crushing North American producers
