The Organization of the Petroleum Exporting Countries (OPEC) decided to leave the volume of oil production at the current level of 30 million barrels a day, even though some members were actively calling for production cuts. As the result, the oil market will continue to be in the oversupplied state.
There was no mention of 30 million-barrel figure in OPEC’s statement. The organization’s President Emmanuel Ibe Kachikwu and Secretary General Abdalla Salem el-Badri spoke only about the the “current production level”, which is by about 1.5 million barrels a day higher than the current ceiling.
According to el-Badri, production may vary inside OPEC from time to time and it’s still not clear when Iran will join the market. The next OPEC meeting is scheduled on June 2.
Crude oil was affected by the news. Brent fell below $42 a barrel for the first time since March 2009.