Angelos Damaskos, CEO, Sector Investment Managers and Fund Advisor, Junior Oils Trust comments on Opec’s decision not to increase production:

 

Opec members were divided in their views on oil prices but decided not to increase production for the next quarter. Despite some members arguing that $100/ barrel oil is hurting the global economy, the cartel has decided not to increase supply. The decision indicates that several Opec members do not have much spare capacity to supply a market where demand from Asia continues to be strong. Oil prices are set to be supported at the £100/bl level for the medium term and could rise to old highs in the future.