On December 4 there will be held the 168th OPEC meeting, which is so much expected by market participants. The most discussed scenario of the meeting results - is the preservation of volumes production at the current level of 30 million barrels per day. OPEC categorically does not want to reduce the production volumes, and thus gives a signal to market that the cartel will not reduce oil production, while other manufacturers do not do this.
Many experts assess the condition of the competitiveness of Saudi Arabia as good. The country is able to withstand low price level for much longer than other OPEC members, who are beginning to fear further decline to $20 per barrel. Opinions of members of the cartel were divided, this is especially seen in the background of Venezuela, which urges OPEC to return to the balance prices.
Thus, OPEC is experiencing regular pressure from the inside by disgruntled members who are calling for limiting oil production. Also, the whole oil market on the background of rising dollar, awaiting the results of the Fed's decision on a possible increase of interest rates. We should not forget about Iran, who said that after lifting of sanctions, it will increase production to 500 million barrels a day. This decision even more press on OPEC in the context of reducing production volumes to increase in prices.
Goldman Sachs agency believes that the probability of reducing cost for a barrel to $20 or lower is real. This is primarily due to the rise in price of the dollar and the economic slowdown in China. The Bank of America Merrill Lynch is also considered the decreasing of oil production is unlikely. Barclays claimed that the increase of limit - is only a formality for OPEC to take Iran into their ranks without a significant impact on production.