This week the O&G industry sees crude oil prices rising closer to the USD50 mark a barrel with WTI crude at USD48.62 and Brent crude at USD49.64 as of June 5th.
With the current upward trend, it is not too reaching to speculate that crude prices may possibly touch USD60 and beyond by end of the year, but I am no expert, so this is merely an uneducated speculation.
Not surprising, though, that they failed yet again to set a production ceiling when just a few months ago at the deepest of the slump, some OPEC members refused to back off from increasing their own production numbers, when such a move would have helped reduce the pressure off crude prices at the time.
And a couple of months later, they still haven’t managed to agree on anything much.
Admittedly that prices have never been solely dependent on the “supply-demand-elasticity” thing we studied in Economics 101, but it would have helped at the time.
In reality, OPEC has long since lost their relevance and can no longer control the market like they did a couple of decades ago.