As OPEC goes in to a two-day meeting today trying to stem the downward pressure on oil prices that started in June of 2014, indications are that it will not happen.
That, as member and non-member nations continue to squabble, and refuse so far to come out with a unified plan for any kind of production freeze, never mind cutbacks.
Even before the scheduled meeting major OPEC producer Iraq is requesting an exemption from any freeze or cutback, and Nigeria and Libya, with output problems, have been granted an exemption.
However, it is Iran that could be the biggest problem.
OPEC’s third largest producer next to Saudi Arabia and United Arab Emirates, and seventh largest overall in the world, continues to send mixed messages at best as to whether they will limit or even freeze production.
That would leave Saudi Arabia and Russia, the second and third largest producers to take the brunt of any production move to stem the pressure on the oil market, and with the rampant cheating that goes on within OPEC, that outcome is not likely either.
Oil, which moved up well over US $50 in recent weeks has now fallen below that benchmark price and maybe headed even lower in the months to come.
OPEC will release the results of their meeting and a hoped for plan at the end of November. Crude oil is trading at $49.43 per barrel this morning.