The oil price remains steady as Opec and Non Opec members such as Russia sit down for a two day meeting in Abu Dhabi to discuss the recent efforts in cutting supplies.
A deal was brokered in late 2016 between the various Opec and Non Opec members to reduce oil supplies in order to boost the price but it seems that all is not well with the deal and countries such as Libya who are exempt, are pumping oil at record levels which is keeping pressure on the oil price.
Some say history shows that deals to cut production have a history of falling apart through non compliance and this time will be no different.
“The reality is OPEC has no way of enforcing the production caps,” said Gao Jian, an analyst at SCI International. “That has been the problem of the cartel for many years now.” He added.
The Key for higher oil prices could be Venezuela, with US President Donald Trump promising tough sanctions should the political instability continue with Venezuelan President Maduro attempting to seize total control
"Even limited new US-imposed sanctions or discussion of broader sanctions could be a catalyst for Venezuela defaulting on its upcoming debt payments, which would put upward pressure on oil prices and help tighten light-heavy spreads." Noted Warren Russell from Barclays (LON:BARC).