VIENNA - The Organization of the Petroleum Exporting Countries on Sunday agreed to keep existing output quotas intact, but said it would abide by them more strictly and called another meeting on May 28.
The following are a series of analyst views on the decision.
DAVID FYFE, HEAD OF THE OIL INDUSTRY AND MARKETS DIVISION AT
THE INTERNATIONAL ENERGU AGENCY
"I think generally speaking it's a sensible decision and one that the IEA could welcome given the strains that are being faced by the global economy.
"The last thing we need in the short term in an abrupt surge in oil prices."
JOHN KILDUFF, SENIOR VICE PRESIDENT AT MF GLOBAL IN NEW YORK
"The decision should have a somewhat negative impact on oil prices as the market had priced in another cut. The oil market will still be oversupplied. I think crude oil prices will go down to around $40 a barrel."
PHIL FLYNN, ALARON TRADING, CHICAGO
"It looks like OPEC is finally kicking in with their economic stimulus. It's about time.
"I think the Saudis had their way. They were tired of carrying the load for the cartel.
"Other factors that might have influenced the Saudis were a stronger dollar and pressure from the Obama administration.
"This will lead to lower prices, but I think the stimulus to the economy will help increase demand for oil down the road."
OLIVIER JAKOB, PETROMATRIX
"The outcome of the meeting basically shows that we are done with the OPEC cuts. On the way up to $150 a barrel, OPEC had shown that they did not have much spare production capacity. They are now showing that they have no more cut capacity.
"A small cut of 500 to 1 million barrels per day could have helped the market sentiment, but such a small cut will be of no help if prices were to go sub $35 a barrel.
"In theory the current level of OPEC production should translate slowly into stock draws, but if OPEC is wrong on the balances then it will be left to Non-OPEC supply destruction to rebalance the market but that would mean lower prices."
LAWRENCE EAGLES, HEAD OF COMMODITIES RESEARCH AT JP MORGAN
IN NEW YORK
"At the moment, getting the world back on its feet is more important than lifting the oil price by a further $10 a barrel.
"The world economy is crucial. Short-term gain would be to the long-term detriment of OPEC."
The following are a series of analyst views on the decision.
DAVID FYFE, HEAD OF THE OIL INDUSTRY AND MARKETS DIVISION AT
THE INTERNATIONAL ENERGU AGENCY
"I think generally speaking it's a sensible decision and one that the IEA could welcome given the strains that are being faced by the global economy.
"The last thing we need in the short term in an abrupt surge in oil prices."
JOHN KILDUFF, SENIOR VICE PRESIDENT AT MF GLOBAL IN NEW YORK
"The decision should have a somewhat negative impact on oil prices as the market had priced in another cut. The oil market will still be oversupplied. I think crude oil prices will go down to around $40 a barrel."
PHIL FLYNN, ALARON TRADING, CHICAGO
"It looks like OPEC is finally kicking in with their economic stimulus. It's about time.
"I think the Saudis had their way. They were tired of carrying the load for the cartel.
"Other factors that might have influenced the Saudis were a stronger dollar and pressure from the Obama administration.
"This will lead to lower prices, but I think the stimulus to the economy will help increase demand for oil down the road."
OLIVIER JAKOB, PETROMATRIX
"The outcome of the meeting basically shows that we are done with the OPEC cuts. On the way up to $150 a barrel, OPEC had shown that they did not have much spare production capacity. They are now showing that they have no more cut capacity.
"A small cut of 500 to 1 million barrels per day could have helped the market sentiment, but such a small cut will be of no help if prices were to go sub $35 a barrel.
"In theory the current level of OPEC production should translate slowly into stock draws, but if OPEC is wrong on the balances then it will be left to Non-OPEC supply destruction to rebalance the market but that would mean lower prices."
LAWRENCE EAGLES, HEAD OF COMMODITIES RESEARCH AT JP MORGAN
IN NEW YORK
"At the moment, getting the world back on its feet is more important than lifting the oil price by a further $10 a barrel.
"The world economy is crucial. Short-term gain would be to the long-term detriment of OPEC."
