Market Awaits OPEC Decision

INDUSTRY.co.id - Jakarta - Market interest in oil is dwindling as expectations that OPEC and Russia will ease production restrictions to offset declining Venezuelan production and production disruptions in Iran.

"Although the increase in production is likely to have been reflected in prices, oil remains at a steady pace if the OPEC meeting in Vienna does not result in a breakthrough," said Lukman Otunuga, Research Analyst at FXTM in Jakarta, Wednesday (6/20/2010).

WTI crude is currently bearish on daily chart. The price flashed down $ 65.00 this afternoon. Drops repeatedly below this level can make the bears shoot $ 64.30 then $ 64.00.

He said Iran, Venezuela and Iraq are expected to reject Saudi Arabia and Russia's decision to increase production.

"The dispute among cartel members in this discussion could spark concerns about the future of the OPEC production trimming agreement," he said.