Rigzone: WTI Trades Above $54

“There is an expectation that OPEC and Russia will agree to cut output by as much as 1.3 million barrels per day,” Jason Feer, global head of business intelligence with Poten & Partners, told Rigzone late Tuesday. “Canada has already moved to reduced its output by more than 300,00 barrels per day. This should at least help stabilize oil markets until it is possible to get a better read on demand.”

Feer added, however, that stabilizing oil prices comes with some risk.

“Many U.S. producers will make money at current price levels and U.S. production is expected to rise in 2019,” Feer said. “In the worst case, output cuts could simply clear the decks for additional U.S. supply without having a significant and long-term impact on prices.”

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