Lest we forget: the reason oil producers are hoping for an output freeze is because the demand side is weakening and world oil inventories are at record highs. But even if an output agreement is achieved in principle next week, the norm is for OPEC members to cheat and pump more than the agreed quantity. Then there is the self-interest of all the other global producers to keep selling product, in an effort to grab needed cash flow.
Iran will be resistant to any agreement to cut production at November’s OPEC meeting, Again Capital’s John Kilduff told CNBC on Wednesday.
“There’s just no way the Iranians are going to agree to this,” Kilduff said. “I think they see a horizon, potentially, where their oil production and exports get disrupted again by the new Trump administration, … so why would they agree to any sort of cut at all right now?” Here is a direct video link.