Oil prices fell almost 4 percent in global markets today as Iran’s oil minister said that the country was willing to leave oil production at levels suggested by the OPEC in its September meet.
The Organization of the Petroleum Exporting Companies (OPEC) will be meeting on Wednesday in Vienna to discuss the agreement it took in September of cutting output by around 1 million barrels a day.
The disaster that OPEC was hoping to avoid looks unavoidable as players refuse to cut output, said John Kilduff, Partner at Again Capital.
It is fairly clear that there may not be an output cut and how low oil prices can fall hereon, he said.
Reactions from the countries after OPEC meeting will be closely watched, he said adding that Saudis could ramp up production further to over 11 million barrels potentially as they had threatened few weeks back.
This could lead to a serious fight in coming months according to Kilduff.