The price of crude oil slipped in early trading this morning despite hopes that a deal to curb production, due to run out at the end of the year, can be made more permanent.
Facing a plunge in the value of crude, caused by a glut in world supply, 24 countries agreed at the end of 2016 voluntarily to limit production.
These included the 14 member-countries of the energy cartel, the Organisation of Petroleum Exporting Countries (OPEC), and the looser grouping, known as NOPEC, which is supportive of the cartel without joining it. Major NOPEC members include Russia, Mexico, Oman and Sudan.
From a recent low of $27 a barrel in January 2016, the price – supported by the production curbs – has made a strong recovery. This morning, Brent crude, which is used as a worldwide benchmark in oil contracts, was trading at $67.93, 19 cents down on yesterday.
The key US crude, West Texas Intermediate, was trading at $63.32, also down 19 cents on yesterday.
OPEC meets in Vienna on June 22, and statements will be scrutinised for a clearer idea of the organisation’s thinking.