All eyes are on the ministers from the Organisation of the Petroleum Exporting Countries (OPEC), who are scheduled to meet in Vienna on June 5. According to the UK’s Business Insider, it remains to be seen whether Saudi Arabia’s war in Yemen will change their entire strategy.
Oil prices are currently on the rise, following a six-year low of $45 a barrel in January. Brent crude reached $65.56 on May 29, up $2.98, or 4.8%.
Business Insider noted that it is unlikely that OPEC will make a decision regarding its production ceiling for two reasons: the first one that Russia and other non-OPEC producers have expressed their non-desire to cooperate in any idea of a production cut.
But, if prices fall again, RBC’s Helima Croft says it is possible Saudi Arabia could call for a “course of correction”. This is because Saudi spending has skyrocketed in its efforts to influence regional rivals (like its military campaign in Yemen) and keep citizens at home “content” (with salary increases).
http://www.neurope.eu/article/opecs-strategy-talks-overshadowed-by-saudi-arabias-war-in-yemen/