The Organization of the Petroleum Exporting Countries (OPEC) is scheduled to meet this Thursday in Vienna to discuss production targets, and despite sinking demand, we don't expect the petroleum cartel will cut production any further than the the 4.2 million barrels a day it announced last year.
With so much uncertainty remaining in respect of the economy and how it all will pan out, it's not unlikely that the oil price will take a breather after nearly doubling (WTI) since the low seen earlier this year. There is one thing, however, that we are quite convinced about and that is that we will look back at this period as the time when "decoupling" (global debt rebalancing) started in earnest.
Oil prices rebounded to a 6-month high on Tuesday, up 78 cents and closing at $62.45 a barrel.
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