Iraq, Venezuela see $75-80 as “fair” price for oil

“They don’t seem to be affecting production, shipping, demand, supply..”.

This week’s production meeting of the Organization of Petroleum Exporting Countries (OPEC) takes place against a backdrop of sharply lower oil prices that have slashed revenues for the cartel’s 12 members.

Brent for July settlement dropped as much as $1.75 to $63.74 a barrel on the London-based ICE Futures Europe exchange and was at $64.46 at 1:04 p.m. local time. Crude supplies have fallen for four straight weeks since hitting a record high in April, though production has held steady near multi-decade highs.

Investors awaited a U.S. government report on oil inventories due at 1430 GMT.

The end of the U.S. driving season by then will mean slower demand, he said.

Some analysts, including those at Morgan Stanley, have raised the remote possibility that OPEC might surprise the market by increasing the output ceiling.

On Friday, OPEC meets following a seminar of two-days featuring the CEOs of the biggest energy groups in the world including Exxon and BP., companies whose fortunes were altered abruptly by the decision of OPEC to abandon efforts to sustain the prices of oil at over $100 per barrel, in favor of defending its market share.

Iran will try to persuade OPEC countries to reverse production increases they implemented to fill a gap left by sanctions on Iran, the country’s OPEC delegate Mehdi Asali was quoted as saying, ahead of a potential nuclear deal that could see sanctions lifted. While prices have recovered some ground this year, analysts see the oversupply lasting as major global producers continue to pump crude at a rapid pace.

When OPEC decided not to cut its output last November, despite the rout in prices, many observers saw this as the first salvo in a battle for market share with the booming U.S. shale industry and other global suppliers.

In his speech, OPEC Secretary-General Abdullah al-Badri said the 12-member group was committed to playing an active role. “The meeting is expected to be smooth sailing”. The cartel’s quota is presently set at 30 million barrels per day (mbd), but the actual total production hovers around 31 mbd.

OPEC said demand for oil should increase by 18 million bpd by 2040.