|With Iraq wanting to exit and uncertainty over Russian commitment to an output cut, the prospects for oil to hit US$55-US$60 per barrel appear dim, at least for the moment. “History has shown that sustaining production cuts has never been easy. Any headline news on the Organisation of Petroleum Exporting Countries (Opec) members not toeing the line will create price pressures,” said Thomas Yong, CEO, Fortress Capital.
As it is, oil prices are struggling at around US$50 per barrel. “Already lingering doubts about the oil deal have sent prices struggling to stay firmly above US$50 per barrel. Without the full commitment from all Opec members to the output cut deal, and backing from major non-Opec members, the deal will likely fall through,” said Lee Heng Guie, executive director, Socio Economic Research Centre...........................................Full Article: Source