Oil markets await OPEC

Prices for crude oil edged lower on Thursday June 4th, as investors await Friday’s key meeting of the Organisation of the Petroleum Exporting Countries (OPEC).

It’s widely expected that OPEC will decide to keep production steady at 30 million barrels per day; a level it has been exceeding for the last two years - purportedly in order to weaken prices.

Ahead of the meeting, Brent crude declined more than 50 cents to a little more than $63 per barrel, while US crude prices fell to just above the $59 per barrel mark.

Forecasts from energy advisors Wood Mackenzie point at Brent averaging around $60 per barrel in 2015, with prices expected to climb to an average of $70 in 2016.

Wood Mackenzie also said that it is unlikely OPEC will agree to cut output, and production is expected to remain above the 30 million barrels per day ceiling throughout next year.

Bhushan Bahree, senior director at IHS Energy, echoed the views, saying that: “Although surprises from OPEC can never be ruled out, prospects for a policy reversal at this time range from slim to non-existent.”