Internal crisis within the OPEC weighing down on oil prices

Discussion in 'CFDs' started by Profiforex_Victory, May 10, 2016.

  1. Profiforex_Victory

    Profiforex_Victory Новичок

    Disputes within the OPEC has greatly affected its ability to exercise major decisions in the market. Differences between Iran and Saudi Arabia has made it very difficult for the OPEC to reach a unique decision in the oil market. Such differences have introduced complications in cutting down global supply in the market. This had greatly restricted sustained increase in oil prices.

    Russia on the other hand has been largely affected by the great slide in oil prices. Russia has been pushing for a major deal from the OPEC which was compromised at the failed Doha meeting when Iran insisted that they would strive to increase global supply to the capacity where they operated before they were hit with sanctions.

    This would mark the third time Iran has altered its price formulas since the beginning of the year. Iran is aiming major oil supplies to Asia hence its reluctance to comply with a global oil freeze strategy. So far this has made it hard for oil prices to sustain their recovery up.

Share This Page