(Riyadh)

Oil prices are currently falling. The reason is fear of a supply glut. After several months of coordinated output cuts between the world’s oil superpowers, OPEC and allies are considering boosting total oil output. There is some contention within the group as to how much to boost production, but increased supply looks highly likely when the cartel meets tomorrow in Vienna. The spark for losses was news that Iran, which had been a hard-line critic of higher output, said it would be willing to accept a modest rise.

FINSUM: Prices have risen because of falling output in Venezuela and fears of a total supply shortage. However, that can be wiped out with the stroke of a pen. We expect prices will moderate.