May 28 (Bloomberg) -- OPEC is likely to leave production quotas unchanged at today’s meeting in Vienna in a bet that demand will recover, pushing prices as high as $75 a barrel by year’s end, ministers said.
Officials from five of the 12 members of the Organization of Petroleum Exporting Countries said before the start of today’s closed-door assembly they supported leaving output targets unchanged, as the group did at its last conference in March. They will push instead for better compliance with targets set late last year.
“We should not make it more difficult for the world economy,” Shokri Ghanem, chairman of Libya’s National Oil Corp., said today in Vienna. OPEC is therefore unlikely to opt for more cutbacks, even as it sees “a lot of overhang in the market.”
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Do I believe US $ 75 / barrel ? Yes as I am betting on recovery. Speculators are aiming at the same level based on 0.318 Fibo retracement. Those have strong recovery convictions should consider one more commodity: natural gas. It's really cheap in my opinion. Majority of the natural gas demand is coming from industrial sector. If you have strong conviction on demand recovery, consider this ETF (NYSE: UNG).
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