WSJ gets a sneak peak at OPEC's draft strategy report
- Reports says OPEC may look at switching back to production quota system
- Most optimistic forecast is for oil at $76, lowest $40 for 2025
- One OPEC source says $100 price is not in any of the reports scenarios
The production limits which OPEC abandoned in 2011 were always fraught with problems. Smaller countries moaned that they couldn't compete and there were arguments over the limits. Many countries ignored the quotas anyway. The WSJ report that new limits would allow the poorer OPEC members to produce more. The report suggests that the limits would come into play if OPEC's share of the global market fell below the current level of 32%
The draft document was presented at an OPEC staff meeting last week so it's likely that the details are out and about in the market already. The details could also change ahead of the next OPEC meeting in June, and is expected to be finalised later in the year
Brent has gone slightly offered since Reuters carried the WSJ headline and you can read the full story (gated) here
