Expect no concrete decision at Sept OPEC meet: Fat Prophets

In a recent development, Russian President Vladimir Putin said he is hopeful of an agreement on oil output freeze. He believes output freeze would be the right decision on global oil market. However, David Lennox, Analyst, Fat Prophets, believes such an agreement is unlikely to take place. He believes no concrete news is to come in the informal Organization of the Petroleum Exporting Countries (OPEC) meeting in September. This is more of a geopolitical event where it will be difficult for OPEC to come out with a decision.  The OPEC production right now has come down to 0.5-1 million barrels from 2.5 million barrel earlier. Even shale production has come down from 9.6 million in July to 8.3 million now, he said. However, even with this reduction in the US, OPEC members continue to supply significantly, keeping in check, the prices, Lennox said. Watch video for more.